If a Customs Union Includes the Lowest­cost World Producer of a

question 95

Multiple Choice

If a customs union includes the lowest­cost world producer of a
Product, then member countries:

• A)will always be better off in trade with that product.
• B)will always be worse off in trade with that product.
• C)can be better off or worse off depending on the strengths of the trade diversion and trade creation effects for that product.
• D)will no longer export or import that product.

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Definitions:

Amplitude

the magnitude or intensity of a fluctuating wave or signal, such as in sound (volume), light (brightness), or electrical signals.

Brightness

A perceptual attribute of visual experience by which an area appears to emit more or less light.

Hue

A color or shade, particularly one that indicates the degree to which a stimulus can be described as similar to or different from stimuli that are described as red, green, blue, and yellow.

Iris

The colored part of the eye that controls the size of the pupil and thus the amount of light that enters the eye.