A Customs Union Is an Agreement That Involves Two or More

question 16

Multiple Choice

A customs union is an agreement that involves two or more countries

• A) that agree to eliminate tariffs and other trade restrictions on most or all mutual trade of their own goods and services,where each country has different tariffs for imports from non-member countries.
• B) that not only agree to eliminate tariffs and other trade restrictions on most or all mutual trade but also agree to a common set of trade barriers to imports from non-member countries.
• C) eliminating trade restrictions on most or all mutual trade,maintaining a common set of trade barriers against imports from non-member countries,and permitting mobility of capital and labour among member countries.
• D) eliminating trade restrictions on most or all mutual trade,maintaining a common set of trade barriers against imports from non-member countries,permitting mobility of capital and labour among member countries,and adopting a single currency.
• E) that dissolve their borders to become a single political entity.

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Definitions:

Defined-Contribution Plan

A retirement plan where both employer and employee contribute to an individual account for the employee, with the final benefit based on the contributions and investment performance.

Profit-Sharing Plan

A retirement plan that gives employees a share in the profits of the company, often vested over time.

Simplified Method

A straightforward calculation approach, often used for determining the taxable portion of annuity payments or retirement benefits.

Qualified Pension Plan

A retirement plan that meets requirements set forth by the IRS to qualify for favorable tax treatment.