If Country a Forms a Customs Union with Country B

Multiple Choice

If country A forms a customs union with country B, then

A) country B continues to get tariff revenue from country A's exports sent to B.
B) all new trade between countries A and B because of the union is known as "trade Creation."
C) the welfare of countries A and B must necessarily be enhanced, especially if A and B Begin to buy many items from each other that they used to buy from the "outside World."
D) countries A and B may especially benefit from the union if substantial economies of Scale exist in some of the A and B industries.