Regarding open economies, economists tend to find evidence that
A) the more closed an economy is, the higher the rate of growth the economy will experience.
B) trade tariffs tend to improve economic growth.
C) free trade encourages a more rapid spread of technology, and hence increases economic growth.
D) open economies tend to have access to smaller markets than do closed economies.

Question

Quizplus · Accepted Answer

Free trade encourages a more rapid spread of technology, and hence increases economic growth. This is because open economies have access to a larger pool of resources, including new ideas, technologies, and innovations, which can be spread more quickly through trade and investment. This leads to higher productivity, increased efficiency, and ultimately, stronger economic growth. Closed economies, on the other hand, may have limited access to these resources, which can stifle innovation and slow economic development.

Regarding Open Economies, Economists Tend to Find Evidence That