The Formation of a Trade-Creating Customs Union Where All Economic

question 13

Multiple Choice

The formation of a trade-creating customs union where all economic resources of member nations are fully employed before and after the formation of the customs union leads to an:

• A)increase in the welfare of member and nonmember nations
• B)increase in the welfare of member nations only
• C)increase in the welfare of nonmember nations only
• D)increase or decrease in the welfare of member and nonmember nations

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Definitions:

Eutrophication

The process by which a body of water becomes enriched in nutrients, leading to plant growth and depletion of oxygen.

Inorganic Fertilizer

Fertilizers made from synthetic, chemically manufactured compounds primarily to supply essential nutrients to plants.

Salty Soil

Soil that contains a high level of soluble salts, often making it unproductive for agriculture due to its effect on the osmotic balance of plants.