A common market includes

A common market includes

• A. Includes a customs union and allows free movement of factors of production between members.
• B. Only eliminates tariffs on goods, with no labor movement.
• C. Requires a single currency.
• D. Does not allow capital movement.

Answer: (A)

A common market combines a customs union with the free movement of the factors of production (labor and capital) across member countries. This means goods cross borders with no internal tariffs and a shared external tariff, while people and investment can move freely, enabling workers to take jobs in other members and capital to flow to where it’s needed. That combination goes beyond simply eliminating tariffs on goods, and it’s not about having a single currency or restricting capital. The other options miss one or more of these elements, such as omitting labor mobility, requiring a currency union, or banning capital movement.

A common market combines a customs union with the free movement of the factors of production (labor and capital) across member countries. This means goods cross borders with no internal tariffs and a shared external tariff, while people and investment can move freely, enabling workers to take jobs in other members and capital to flow to where it’s needed. That combination goes beyond simply eliminating tariffs on goods, and it’s not about having a single currency or restricting capital. The other options miss one or more of these elements, such as omitting labor mobility, requiring a currency union, or banning capital movement.