The implementation of a common market involves all of the following except ?
Correct answer: B. a common tax system and monetary union
- A. elimination of trade restrictions among member countries
- B. a common tax system and monetary union
- C. prohibition to restriction on factor movements
- D. a common tariff levied in imports from nonmembers
Explanation
A common market removes internal trade barriers, permits factor movement, and usually applies a common external tariff. A common tax system and monetary union go beyond a common market and belong to deeper stages of integration.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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