Arrange the Following in Order from Lowest to Highest Level

question 85

Multiple Choice

Arrange the following in order from lowest to highest level of economic integration.

• A)customs union→economic union→free trade area→common market
• B)economic union→customs union→common market→free trade area
• C)common market→free trade area→economic union→customs union
• D)free trade area→customs union→common market→economic union
• E)common market→economic union→customs union→free trade area

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Definitions:

Capital

Resources, such as equipment, buildings, and machinery, used in production to create goods and services.

Labor

The human effort, both physical and mental, that is used in the production process to create goods and services.

Slope

In mathematics and economics, the measure of the steepness or incline of a line, often used to describe changes in variables in relation to one another.

Isocost

A line representing all combinations of a firm's inputs that cost the same amount.