________ eliminates trade barriers between member nations, adopts a common external policy, and permits factors of production to move freely between member countries but it also requires a common currency, harmonization of members' tax rates, and a common monetary and fiscal policy.
A) A free trade area
B) A common market
C) An economic union
D) A customs union

Question

Quizplus · Accepted Answer

An economic union entails even closer economic integration and cooperation than a common market. Like the common market, an economic union involves the free flow of products and factors of production among member countries and the adoption of a common external trade policy, but it also requires a common currency, harmonization of members' tax rates, and a common monetary and fiscal policy.

________ Eliminates Trade Barriers Between Member Nations, Adopts a Common