Which of the following is true with regard to an economic union?
A) There are restrictions on immigration, emigration, or cross-border flows of capital among member-countries.
B) It entails less economic integration and cooperation than a common market.
C) It involves the free flow of products and factors of production among member-countries.
D) It is defined as a central political apparatus coordinates the economic, social, and foreign policy of the member states.
E) It does not adopt a common external trade policy.

Question

Quizplus · Accepted Answer

An economic union involves the free flow of products and factors of production among member-countries. This means that there are no restrictions on trade or cross-border investment among member-countries.

The other statements are incorrect:
A) There are no restrictions on immigration, emigration, or cross-border flows of capital among member-countries in an economic union. 
B) A common market involves less economic integration and cooperation than an economic union. 
D) An economic union does not necessarily involve a central political apparatus coordinating the economic, social, and foreign policy of the member states. 
E) An economic union adopts a common external trade policy.

Which of the Following Is True with Regard to an Economic