Which Form of Regional Cooperation Agreement, When Fully Implemented, Entails

question 74

Multiple Choice

Which form of regional cooperation agreement, when fully implemented, entails creation of a unified central bank, the use of a single currency, and common policies on agriculture, social services, and welfare?

• A)Free trade area
• B)Customs union
• C)Common market
• D)Economic union
• E)Dispute settlement body

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Definitions:

Deadweight Loss

The loss of economic efficiency that occurs when the equilibrium for a good or service is not achieved, often due to market failure or intervention.

Excise Tax

A charge imposed on the sale or use of particular products or services, including alcohol, tobacco, and fuel.

Tax Burden

The financial charge or other levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Consumers

Individuals or groups that purchase goods or services for personal use and not for manufacturing or resale purposes.