A dynamic welfare gain resulting from the formation of the European Union would be:
A: Trade diversion
B: Trade craetion
C: Diseconomies of scale
D: Economies of scale
A: Trade diversion
B: Trade craetion
C: Diseconomies of scale
D: Economies of scale
举一反三
- By joining NAFTA, the United States, Canada, and Mexico would find their short-run welfare decreasing due to the: A: Economies of scale effect B: Business investment effect C: Trade creation effect D: Trade diversion effect
- Countries trade with each other because they are _______ and because of ______ A: different, costs B: similar, scale economies C: different, scale economies D: similar, costs
- Because of substantial economies of scale, the _____ theory argues that trade can increase the variety of goods available to consumers. A: absolute advantage B: technological gap C: new trade D: factor endowments
- According to trade statistics, China's trade surplus mainly comes from its trade with ___________. A: The United States B: The European Union C: China's Taiwan D: China's Hong Kong
- International trade can be based on economies of scale even if both nations have identical: A: factor endowments B: tastes C: technology D: all of the above