Which of the following are two primary reasons countries should remain focused on opening markets?

• A. To decrease the supply of goods and raise domestic prices
• B. To increase economic efficiency and promote consumer choice
• C. To reduce government spending and eliminate all trade deficits
• D. To ensure complete self-sufficiency and avoid foreign competition

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the concept of opening markets, which generally refers to reducing trade barriers such as tariffs and quotas to allow for freer exchange of goods and services between countries.
2. Step 2: Recognize that one primary reason for opening markets is to increase economic efficiency. This happens because countries can specialize in producing goods where they have a comparative advantage, leading to better resource allocation globally.
3. Step 3: Identify that another key reason is to promote consumer choice. When markets are open, consumers have access to a wider variety of goods and services, often at lower prices due to increased competition.
4. Step 4: Evaluate the other options: decreasing supply to raise prices contradicts the goal of open markets, reducing government spending and eliminating trade deficits are not direct reasons for opening markets, and ensuring self-sufficiency opposes the idea of openness and trade.
5. Step 5: Conclude that the two primary reasons countries focus on opening markets are to increase economic efficiency and promote consumer choice.