______________ resulting from the formation of a customs union tend(s)to be five to six times larger than ______________,thus providing incentive for the United Kingdom to join the EU in 1973.
A)Static gains; dynamic gains
B)Trade creation; trade diversion
C)Dynamic gains; welfare gains
D)Dynamic gains; static gains

Question

Quizplus · Accepted Answer

Dynamic gains resulting from the formation of a customs union tend to be larger than static gains. Dynamic gains include long-term benefits such as increased productivity and innovation, while static gains are immediate benefits like tariff reductions. This potential for larger dynamic gains provided an incentive for the UK to join the EU.

______________ Resulting from the Formation of a Customs Union Tend(s)to