An Open Economy Is One That

question 74

Multiple Choice

An open economy is one that

• A) relies on a market system to allocate scarce resources.
• B) relies on central planning to allocate scarce resources.
• C) has a flexible exchange rate.
• D) trades with other countries.
• E) does not trade with other countries.

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Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.