A customs union is a trade agreement:
a. in which member countries are free to set their separate tariffs on other countries.
b. in which members agree to set similar tariffs on nonmembers.
c. in which resources are free to move between member countries.
d. in which member countries have common currency.
Ans: b. in which members agree to set similar tariffs on nonmembers.
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What will be an ideal response?
Related to the Economics in Practice on page 292: The smart phone industry is best characterized as
A. an oligopoly. B. a monopoly. C. monopolistically competitive. D. purely competitive.
All of the following concepts are related EXCEPT
A. Competition. B. Government planning and regulation. C. The invisible hand. D. The price mechanism.
Which of these is an important determinant of contract duration as suggested by the economic models on franchise contracts?
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