Bar Exam Practice 2025 – 400 Free Practice Questions to Pass the Exam

The commerce clause of the U.S. Constitution is a fundamental provision that grants Congress the power to regulate commerce among the states, with foreign nations, and with Native American tribes. This power is crucial for establishing a national economy because it allows for the free movement of goods and services across state lines without obstruction. By facilitating trade across state lines, the commerce clause helps create a unified economic market within the United States, enabling states to integrate their economies.

In practical terms, the commerce clause prevents individual states from enacting laws that would favor local businesses at the expense of out-of-state competitors. This promotes competition and efficiency, supports economic growth, and ultimately benefits consumers by providing them with more choices and lower prices.

The other options misinterpret the role of the commerce clause. Limiting trade to local boundaries would contradict the intention of creating a national economy. Allowing states to blockade interstate shipping would create barriers to trade, undermining economic unity. Lastly, while competition with foreign markets can be influenced by commercial regulation, that is not the primary function of the commerce clause, which focuses on regulating trade within the United States. Thus, the correct answer highlights the essential role of the commerce clause in promoting and facilitating inter-state economic activity.