A Static Welfare Effect Resulting from the Formation of the European

question 207

Multiple Choice

A static welfare effect resulting from the formation of the European Union would be:

• A) Economies of scale
• B) Trade diversion
• C) Investment incentives
• D) Increased competition

---

Definitions:

Constitutional Amendments

Changes or additions made to the U.S. Constitution, requiring a significant consensus for ratification as outlined in the document itself.

Hierarchically Structured

Organized in a way that each level is ranked above or below others, typically referring to systems of organization within corporations or institutions.

Public Bureaucracies

Organizational structures within the government responsible for implementing laws and policies, consisting of non-elected officials and agencies.

Hierarchically

Arranged in order of rank, with higher levels of power or importance dominating lower ones.