Multiple choice

An economic union is the most advanced type of economic integration.

  1. It unifies the monetary and fiscal policies of member states

  2. It permits no tariff barriers on trade among members

  3. It allows free movement of capital and labour among member nations

  4. It allows no tariffs on trade among members and a common tariff policy towards the rest of the world is followed
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A Correct answer
Explanation

An economic union represents the deepest form of economic integration, going beyond a common market to include coordination or unification of economic policies among member states. While economic unions include features like free trade (B) and factor mobility (C), the distinguishing feature that makes it the 'most advanced' is the integration of economic policy frameworks including monetary and fiscal coordination (A).

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