The Main Difference Between a Free Trade Area and a Customs

question 86

Multiple Choice

The main difference between a free trade area and a customs union is that the members of a customs union ________.

• A)agree to the free movement of all factors of production
• B)harmonize their tax,monetary,and fiscal policies and create a common currency
• C)agree to treat trade with all nonmember nations in a similar manner
• D)accept a common stance on economic and political policies regarding nonmember nations

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Definitions:

Social Psychology

The examination of individuals' cognitions, emotions, and actions within the framework of their social environments.

Compliance

A social psychology concept where individuals change their behavior in response to an explicit request from others.

Stanley Milgram

An American social psychologist best known for his controversial experiments on obedience to authority conducted in the 1960s.

Obedience

The act of following orders or instructions, usually from an authority figure, without questioning.