Which Feature of an Economic Union Differentiates It from a Common

question 14

Multiple Choice

Which feature of an economic union differentiates it from a common market?

• A) Free flow of products and factors of production between member countries
• B) A common monetary and fiscal policy
• C) A common external trade policy toward nonmembers
• D) Ability of factors of production to move freely between members

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Definitions:

Business Operations

The activities that businesses engage in on a day-to-day basis to increase the value of the enterprise and earn a profit.

EOQ

Economic Order Quantity, a formula used to determine the optimal quantity of inventory to order that minimizes total inventory costs.

Fixed Ordering Costs

Fixed ordering costs are consistent expenses incurred in the process of ordering inventory or supplies, regardless of the order size.

Material Cost

The expense incurred to purchase or produce the raw materials used in manufacturing a product.