Answer: common market.

## Explanation This question tests knowledge of different levels of economic integration. Let's analyze each option: **A. Free trade area** - This involves elimination of trade barriers among member countries, but each country maintains its own trade policies with non-members. This does NOT include free movement of factors of production (labor and capital) or a common trade policy against non-members. **B. Customs union** - This includes elimination of trade barriers among members PLUS a common external tariff against non-members. However, it does NOT include free movement of factors of production (labor and capital). **C. Common market** - This includes ALL the features mentioned in the question: 1. Free movement of goods and services (like a free trade area) 2. Free movement of factors of production (labor and capital) 3. Common trade policy against non-members (like a customs union) **Key Distinctions:** - **Free trade area**: Only eliminates internal trade barriers - **Customs union**: Free trade area + common external tariff - **Common market**: Customs union + free movement of factors of production - **Economic union**: Common market + harmonized economic policies - **Complete economic integration**: Economic union + unified economic policies Since the question specifically mentions "free movement of goods, services, and factors of production" AND "common trade policy against non-members," this perfectly describes a **common market**. **Real-world examples:** - European Union (EU) is an example of a common market - NAFTA was a free trade area - MERCOSUR is a customs union

Author: LeetQuiz .