Question

Which action is an example of domestic policy?

A governor decides against running for a second term.
The president negotiates a peace treaty between two warring nations.
Congress passes a law that grants tax credits for installing solar panels.
The Supreme Court strikes down a law that bans importing inefficient automobiles.

Answer 1

Domestic policy is concerned with laws, government programs, and administrative decisions. They are directly related to all issues and activities in a country. It is different than foreign policy. The latter shows government's interests in world politics. The option "The Supreme Court strikes down a law that bans importing inefficient automobiles" is an example of domestic policy action.

Answer 2

The first one is a personal decision.

The second one is an example of international politics. Similarly the last one: the import ban will influence foreign countries.

The third one is a good example of a domestic policy: it does not affect foreign countries and is not a personal decision.