Which of the following is a characteristic of a common market?

• A. A single currency shared by all member countries
• B. Free movement of goods, services, capital, and labor among member countries
• C. No trade between member countries
• D. Complete political union among member countries

Answer: (B)

Verified step by step guidance

1. Understand the concept of a common market in microeconomics and international economics. A common market is a type of trade bloc that allows for the free movement of certain economic factors among member countries.
2. Recall the key features of a common market, which typically include the removal of tariffs and quotas on goods, as well as the free movement of services, capital, and labor across member countries.
3. Compare the options given: a single currency is a feature of an economic and monetary union, not necessarily a common market; no trade between members contradicts the idea of a market; complete political union goes beyond economic integration and is not required for a common market.
4. Identify that the correct characteristic of a common market is the free movement of goods, services, capital, and labor among member countries, which facilitates deeper economic integration than a simple free trade area.
5. Conclude that the defining feature of a common market is the removal of barriers not only to trade in goods but also to the movement of factors of production like labor and capital.