Economic Survey MCQ Series- Question 21

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Next question:

Which of the following is correct regarding Common Market (CM)?

A market where movement of factors of production is relatively free amongst member countries.

B. A market where movement of factors of production is restricted amongst member countries.

C. A market where member countries coordinate macro-economic and exchange rate policies.

D. The free-trade agreement in which members apply a common external tariff (CET) schedule to imports from non members.

 

The correct answer for the previous question is C

The explanation is as follows:

A free trade agreement is a preferential arrangement in which members reduce tariffs on trade among themselves, while maintaining their own tariff rates for trade with non-member

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