When considering international trade, which of the following would be most conducive to domestic economic growth?
A) a closed economy
B) an economy in which its domestic industries are protected by tariffs
C) an economy with free and open markets to the outside world
D) an economy in which most decisions are made by a central governmental authority

Question

Quizplus · Accepted Answer

An economy with free and open markets to the outside world would be most conducive to domestic economic growth as it allows for the exchange of goods and services between countries, leading to increased competition, innovation, and efficiency. This also allows for access to a wider range of resources, technologies, and markets, which can lead to increased economic opportunities and growth. A closed economy (A) would limit economic activity and growth, while an economy with protected domestic industries through tariffs (B) can lead to inefficiencies and distortions in the market. An economy in which most decisions are made by a central governmental authority (D) can also limit growth and innovation by not allowing market forces to operate freely.

When Considering International Trade, Which of the Following Would Be