Common markets differ from customs unions in that common markets ________.
A) allow the free movement of products, services, and factors of production between member countries
B) eliminate tariffs and non-tariff trade barriers when trade and business investments occur between member nations
C) share a regulated system of tariff rates between member nations and equally distribute tax revenue received from non-member countries
D) involve a central authority overseeing the monetary, tax, and fiscal policies of member nations

Question

Quizplus · Accepted Answer

Common markets allow for not just the free movement of products and services, but also factors of production such as labor and capital. Customs unions only eliminate tariffs and trade barriers among member nations. The other two options do not accurately describe either common markets or customs unions.

Common Markets Differ from Customs Unions in That Common Markets