Which term describes the political and economic integration of European states?

• A. NATO
• B. European Union (EU)
• C. ASEAN
• D. Commonwealth

Answer: (B)

The idea being tested is political and economic integration within a region. The European Union embodies this by linking member states through a single market and customs union, which allows the free movement of goods, services, people, and capital. It also operates with shared institutions and laws that coordinate a wide range of policies—from competition and trade to agriculture and the environment—which means member countries cede some sovereignty to regional authorities in exchange for deeper cooperation and stability. Some members also use a common currency, the euro, illustrating how economic integration can go hand in hand with political integration, though not every member uses the euro. This combination of coordinated policy, shared rules, and centralized institutions is what sets the European Union apart from other organizations. NATO focuses on military alliance, ASEAN is a Southeast Asian grouping without Europe-wide integration, and the Commonwealth is a loose association based on historical ties rather than a unified political-economic framework.