When several countries jointly impose common external tariffs, eliminate tariffs on each other, and eliminate barriers to the movement of labor and capital among themselves, they have formed a/na ?

Related Mcqs:

1. A ____ is a regional trading bloc in Which member countries eliminate internal trade barriers but maintain existing barriers against countries that are not member ?

   A. free trade area
   B. customs union
   C. common market
   D. monetary union

2. If a group of countries abolish trade barriers between them and set same tariffs on goods coming in from other countries they are a ?

   A. common market
   B. free trade area
   C. customs union
   D. federation

3. What is called a group of countries that have removed all tariffs, quotas, and export subsidies on trade among themselves ?

   A. Close-trade zone
   B. Free trade zone
   C. Both of them
   D. None of them

4. Poor developing countries typically impose __________ tariffs than rich advanced nations on imports?

   A. lower
   B. higher
   C. about the same height
   D. None of the above

5. In today’s world, most countries impose tariffs ?

   A. only on imports
   B. only on exports
   C. on both imports and exports
   D. on imports exports and nontraded goods

6. Concerning import tariffs of the United States empirical studies tend to conclude that these tariffs are ?

   A. Progressive and thus bear down on the wealthy
   B. regressive and thus bear down on the poor
   C. proportional and thus bear down on all consumers in the same manner
   D. deflationary and thus result in reductions in the price of imports

7. Term the group of countries that have removed all restrictions on trade among themselves?

   A. Close-Trade zone
   B. Free-trade zone
   C. Both of them
   D. None of them

8. Trade creation will more likely outweigh trade diversion for Country X that forms a customs union if the level of tariffs in Country X prior to the customs union is ________ and the total number of countries forming the customs union is _________?

   A. relatively high; relatively large
   B. relatively high; relatively small
   C. relatively low ; relatively large
   D. relatively low ; relatively small

9. In developed countries, tariffs on raw materials tend to be ?

   A. highest of all
   B. higher than on manufactured goods
   C. equal to tariffs on manufactured goods
   D. lower than on manufactured goods

10. For advanced countries such as the United States, tariffs on imported raw materials tend to be ?

    A. equals to tariffs on imported manufactured goods
    B. lower than tariffs on imported manufactured goods
    C. higher than tariffs on imported manufactured goods
    D. The highest of all tariffs