Question

According to the study, in which type of economies did poor countries exhibit faster growth compared to rich countries?

a) Closed economies
b) Open economies
c) Mixed economies
d) Developing economies

Answer 1

b) Open economies

Step-by-step explanation:

In the context of economic studies, the term "open economies" typically refers to countries that engage in international trade and have relatively free movement of goods, services, and capital across borders.

According to various economic theories and empirical studies, open economies often provide more opportunities for economic growth due to increased trade, technology transfer, and access to global markets.

Poor countries often exhibit faster growth in open economies compared to rich countries because international trade allows them to tap into larger markets, attract foreign investment, and benefit from the transfer of knowledge and technology.

Closed economies (Option A) typically have restricted trade and limited international engagement, which may hinder growth opportunities for poor countries.

Therefore, the correct option is b) Open economies.