A Country Will Have Positive Static Benefit from a Customs

question 24

Multiple Choice

A Country will have positive static benefit from a customs union if

• A)the resulting trade diversion is significantly stronger than the resulting trade creation
• B)if the resulting trade creation is significantly stronger than the resulting trade diversion
• C)if the price of import significantly increases over the free trade price without tariff
• D)if there is significant stimulus for investment

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Definitions:

Sedimentary Rock

Rock formed by the deposition and subsequent cementation of mineral or organic particles on the floor of oceans or other bodies of water at the Earth's surface.

Metamorphic Equivalent

The rock type that results when another type of rock is subjected to metamorphism under specific conditions.

Quartzite

A hard, metamorphic rock formed from sandstone through heating and pressure, known for its durability and use in construction.

Marble

A metamorphic rock that is formed from the recrystallization of limestone or dolomite, often used in sculpture and as building material.