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WAEC Economics 2020 Objective — Question 48

Question 48 of 50 from the West African Examinations Council (WAEC) Economics 2020 Objective paper, with the correct answer and a full explanation.

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A free trade area is one in which

  • A. each member operates its own barriers against non-membersCorrect
  • B. factors of production are mobile
  • C. members adopt a common external tariff against non-members
  • D. members adopt common fiscal and economic policies

Explanation

In a free trade area, trade barriers are removed among member countries, but each member retains and operates its own independent barriers/tariffs against non-member countries.

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