A true economic union:

Question

Quizplus · Accepted Answer

A true economic union involves the integration of economic policies between its member countries. This can be seen in the European Union, where there is a common market and coordination of economic policies such as monetary and fiscal policies.

B and C are incorrect options as a true economic union also involves the free movement of factors of production, such as labor and capital, across borders and typically includes a common currency with fixed exchange rates.

D is an incomplete option as it only mentions a customs union, which is a lower level of integration compared to an economic union.

A True Economic Union