Which of the following is correct regarding Common Market (CM)?
A.A market where movement of factors of production is relatively free amongst member countries.
B.A market where movement of factors of production is restricted amongst member countries.
C.A market where member countries coordinate macro-economic and exchange rate policies.
D.The free-trade agreement in which members apply a common external tariff (CET) schedule to imports from non members.
Answer:A
Which of the following is correct regarding Common Market (CM)?
A.A market where movement of factors of production is relatively free amongst member countries. B.A market where movement of factors of production is restricted amongst member countries. C.A market where member countries coordinate macro-economic and exchange rate policies. D.The free-trade agreement in which members apply a common external tariff (CET) schedule to imports from non members.
Explanation: A common market is a customs union where movement of factors of production is relatively free amongst member countries whereas the economic union is a common market where member countries coordinate macro-economic and exchange rate policies.