Types of Economic Integration - SS3 Economics Past Questions & Answers - page 1

1

Which type of economic integration involves the least integration?

A

Free Trade Area (FTA)

B

Customs Union 

 

C

Common Market

D

Political Union

CORRECT OPTION: a
2

Which type of economic integration involves the free movement of goods, services, capital, and people between member countries?

A

Customs Union

B

Common Market

 

C

Economic Union

D

Political Union

CORRECT OPTION: b
3

Which type of economic integration involves the coordination of economic policies such as taxation and social welfare?

A

Customs Union

B

Common Market

C

Economic Union

 

D

Political Union

CORRECT OPTION: c
4

Which type of economic integration involves the formation of a single political entity?

A

Free Trade Area (FTA)

B

Customs Union

 

C

Economic Union

D

Political Union

CORRECT OPTION: d
5

Which type of economic integration involves the adoption of a common external trade policy with other countries or regions?

A

Free Trade Area (FTA)

B

Customs Union

 

C

Common Market

D

Economic Union

CORRECT OPTION: b
6

What is the difference between a Free Trade Area (FTA) and a Customs Union? 

A Free Trade Area (FTA) involves the removal of tariffs and trade barriers between member countries while maintaining their own external trade policies, whereas a Customs Union involves the removal of trade barriers between member countries and the adoption of a common external trade policy with other countries or regions.

 

7

What is the main difference between an Economic Union and a Political Union?

An Economic Union involves the removal of trade barriers, adoption of a common external trade policy, free movement of goods, services, capital, and people between member countries, and coordination of economic policies such as taxation and social welfare. A Political Union involves the formation of a single political entity, with a common government, legal system, and foreign policy.

 

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