Regarding a common market, which of the following is true?
A) It permits the free movement of goods and service among nonmembers.
B) It exercises common external trade restrictions against members.
C) It represents a more complete integration of member nations than a customs union.
D) It restricts the movement of factors of production across national borders.

Question

Quizplus · Accepted Answer

A common market represents a higher level of integration than a customs union as it permits the free movement of factors of production among member countries, in addition to free movement of goods and services. Option A is incorrect because a common market allows free movement of goods and services among member countries only, not nonmembers. Option B is incorrect because a common market eliminates common external trade restrictions among member countries. Option D is also incorrect because a common market allows for the free movement of factors of production.

Regarding a Common Market, Which of the Following Is True