What is an economic union?

An economic union is defined as a type of trade bloc that integrates various levels of economic policies among member countries. It goes beyond a customs union—which eliminates tariffs between member countries and establishes a common external tariff—by also incorporating a common market, which allows for the free movement of goods, services, labor, and capital among the member states.

This integration means that not only are tariffs between member countries abolished, but they also agree on several other economic policies, such as trade regulations, labor laws, and monetary policies. Thus, option B accurately captures this comprehensive approach to economic collaboration, involving both the customs union aspects and the common market features.

In contrast, other choices do not fully encapsulate the definition of an economic union. For instance, a trade bloc without tariffs doesn't imply the full economic integration required for an economic union. A bilateral trade agreement focuses only on two countries and lacks the broader scope of multiple members found in an economic union. Lastly, a market without price restrictions pertains more to free markets rather than the structured and policy-driven nature of an economic union.

Hence, the essence of an economic union is accurately represented by the characteristics outlined in option B.