A Dynamic Welfare Gain Resulting from the Formation of a Customs

question 48

Multiple Choice

A dynamic welfare gain resulting from the formation of a customs union would be:

• A)trade diversion
• B)trade creation
• C)diseconomies of scale
• D)economies of scale

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Definitions:

Food Foraging

The practice of gathering wild food resources, including plants, fungi, and animals, primarily as a means of subsistence.

Root Crop Farming

The cultivation of plants that produce edible roots or tubers, such as carrots, potatoes, and beets, as a major agricultural activity.

Vegeculture

An ancient form of cultivation involving the planting of vegetative parts of plants, such as cuttings or stems, to grow new plants.

Domesticated

Refers to animals or plants that have been selectively bred and genetically adapted over generations to live alongside humans, often for work, food, or as pets.