A market formed when members of a common market agree to implement common social programs and coordinated macroeconomic policies that would lead to the creation of a single regional currency and a regional apex central bank is known as a(n)_____.
A) customs union
B) economic union
C) free trade area
D) common market
E) political union

Question

Quizplus · Accepted Answer

An economic union goes beyond the objectives of a common market by implementing common social programs and coordinating macroeconomic policies to create a single regional currency and an apex central bank. A customs union eliminates trade barriers between members but does not necessarily implement common social or economic policies. A free trade area eliminates tariff barriers between member countries but does not implement other common policies. A common market eliminates trade barriers and allows for the free movement of goods, services, capital, and labor, but does not necessarily implement common economic policies. A political union involves a merger of political institutions of member countries.

A Market Formed When Members of a Common Market Agree