Question

Which sentences in this paragraph describe two government policies that liberalize the economy?

Answer 1

Answer:

(A) "So, the government decides to reduce the tariffs on imported raw materials."

(B) "It also introduces special economic zones where certain goods can be traded tax-free."

Explanation:

Liberal economic policies usually revolve around deregulation of many governmental policies, since advocates tend to prefer a market that is as free as possible – meaning, it is free of governmental influences. Liberal economy is also a form of capitalism, and thus they would support (A) and (B) most, since it reduces barriers for businesses to operate at a profit.  

They would not support (C) and (D) since these two concepts are instead socialist economic policies.