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:

Sympathetic Division

Part of the autonomic nervous system that prepares the body for quick action in emergencies; "fight or flight" response.

Parasympathetic Division

Part of the autonomic nervous system responsible for conserving energy and bringing the body to a state of rest by slowing the heart rate, increasing intestinal and glandular activity, and relaxing sphincter muscles.

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord, which interprets sensory information and issues instructions based on past experience and current conditions.

Peripheral Nervous System

The peripheral nervous system is the part of the nervous system that consists of the nerves and ganglia outside of the brain and spinal cord, which connect the central nervous system to limbs and organs.