In Terms of Static Economic Analysis, If a Customs Union

question 151

Multiple Choice

In terms of static economic analysis, if a customs union results in a large amount of trade creation relative to trade diversion, world welfare

• A) increases.
• B) decreases.
• C) either increases or decreases.
• D) neither increases nor decreases.

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Definitions:

Anal Character

A term from psychoanalytic theory referring to a personality type resulting from a fixation at the anal stage of development, characterized by orderliness, stubbornness, and a focus on control.

Oral Character

A personality type in psychoanalytic theory associated with issues in the oral stage of development, such as dependency.

Phallic Stage

In psychoanalytic theory, the stage of psychosexual development from about 4 to 7 years of age in which the physical focus of the libido is the penis (for boys) and its absence (for girls).

Latency Period

A stage in psychosexual development, proposed by Freud, occurring from about age six to puberty, characterized by a decrease in sexual interest and activity.