In Terms of Static Economic Analysis,if a Customs Union Results

question 269

Multiple Choice

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

• A) increases
• B) decreases
• C) does not change

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Definitions:

Government Regulation

The act of controlling business behavior through rules or laws, enacted to protect public interest.

Cooperative Factories

Manufacturing establishments run by a collective group of workers who share the profits and management responsibilities.

Seventeenth Amendment

An amendment to the U.S. Constitution, ratified in 1913, that established the direct election of U.S. senators by popular vote, replacing their previous selection by state legislatures.

Direct Election

A system of choosing political officials where voters directly cast ballots for the persons or party candidates they desire to see in office, without the intervention of electors or intermediaries.