Which term describes a zone where no tax is charged on trade between states?

• A. Credit
• B. Clause
• C. Electoral College
• D. Common Market

Answer: (D)

The idea being tested is economic integration and how trade barriers are handled between member states. A common market describes a zone where tariffs and trade barriers among member states are removed, allowing goods, services, capital, and often people to move more freely. This makes trade between those states effectively tax-free within the bloc, which is the essence of the term in question. That’s why Common Market is the best choice here: it directly conveys a region where cross-border trade is not taxed, reflecting the goal of deeper economic cooperation seen in histories like the European Market. The other terms don’t describe a trade zone at all—Credit is a lending term, Clause is a provision in a document, and Electoral College is a body for electing a president.