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.

Verified Answer :

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.

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.