Which Economic Integration Scheme Is Solely Intended to Abolish Trade

question 242

Multiple Choice

Which economic integration scheme is solely intended to abolish trade restrictions among member countries,while setting up common tariffs against nonmembers?

• A) Economic union
• B) Common market
• C) Free trade area
• D) Customs union

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Definitions:

Marginal Cost

The expense incurred from manufacturing an extra unit of a product or service.

Average Total Cost

A rephrased definition: The per unit production cost calculated by dividing the sum of all production costs by the quantity of output produced.

Variable Cost

Costs that change in proportion to the level of output or activity of a business.

Fixed Costs

Expenses that do not change with the amount of goods or services produced, such as rent or salaries.