World Welfare Under a Customs Union

question 164

Multiple Choice

World welfare under a customs union

• A) increases because of a trade creation effect.
• B) increases because of a trade diversion effect.
• C) is not affected by the trade creation and the trade diversion effects.
• D) decreases because of a trade creation effect.

---

Definitions:

Employee Participation

Refers to the involvement of employees in decision-making processes and contributing to the improvement of organizational practices.

Tasks Over People

A management approach that prioritizes work and tasks achievement over attending to the well-being and needs of employees.

Authority-obedience Manager

A management style characterized by a primary focus on efficiency and task results, often at the expense of employee relationships and morale.

Efficiency

The ratio of useful output to total input, indicating how effectively resources are utilized to achieve a goal.