CFA CFA Level 1 Question of the Week – Economics

Question of the Week – Economics

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    • AdaptPrep
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      Which of the following forms of trading blocs allow for unrestricted trade of goods and services among its members?
      I. Free trade areas
      II. Customs unions
      III. Common market

      • I and II
      • II and III
      • I, II, and III
    • hairyfairy
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      Looking forward to the explanation on this one!

    • AdaptPrep
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      All
      three of these
      allow for free, unrestricted access of trading goods
      and services. Of the above, the baseline is a free trade area. A customs union
      is a free trade area with common policies amongst trading with nonmembers. A
      common market is a customs union which also allows for free trading of
      intermediary (rather than final) goods.

    • shannondaily
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      Whoo! I got it right. 🙂 

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