Question

describe the three kinds of evidence economists use to support the assertion that economies open to the world grow faster than economies that are closed

Answer 1

Open economies refer to economies that participate in international trade . Intuitively open economies are always at an advantage of obtaining gains from trade than closed economies . They can specialize and can consume higher than their production point . The three kinds of evidence ecnomists use to support this assertion are :

1) Casual empirical evidence of historical experience . This empirically justifies the assertion or proofs it using past data or experience .
2) Evidence based on economic models and deductive reasoning . Various trade models and models developed by economists discuss the various benefits of open economies .
3) Evidence from statistical comparisons of countries . Comparing data on economic variables such as GNP and National Income from different countries which are open or closed to understand the growth rate .