Which of the Following Accurately Depicts the Levels of Economic

question 29

Multiple Choice

Which of the following accurately depicts the levels of economic integration,from least integrated to most integrated?

• A)Free trade area,customs union,common market,economic union,and political union
• B)Economic union,common market,free trade area,political union,and customs union
• C)Common market,economic union,political union,free trade area,and customs union
• D)Political union,free trade area,common market,customs union,and economic union

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Definitions:

Price-Taking Firms

Companies that accept the market price as given and have no power to influence that price due to competition and market structure.

Economic Profit

Profit calculated by subtracting both explicit and implicit costs from total revenues, providing a more complete measure of real profitability.

Quantity

The amount or number of a product or service available or demanded in a market.

Costs

The expense incurred in the production of goods or services or in the undertaking of any activity.