A-LevelEconomicsInternational economic issues9708/12 · May/June 2010 · Q201 Mark

A group of countries decides to change from being a customs union to being an economic union. What additional feature will this give the group?

Acommon external quota on imports from non-members

Bcommon external tariff on imports from non-members

Cthe removal of restrictions on the movement of capital and labour between members

Dthe removal of tariffs and quotas on products exchanged between members

✓ Correct answer

C: the removal of restrictions on the movement of capital and labour between members

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Topic: International economic issues, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, May/June 2010 Paper 1 Variant 2, question 20.

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