The Major Difference Between a Closed Economy and an Open

question 150

Multiple Choice

The major difference between a closed economy and an open economy is that a(n)

• A)closed economy balances budget, while an open economy does not.
• B)open economy is a market economy, while a closed economy relies on planning.
• C)open economy interacts with the rest of the world, while a closed economy does not.
• D)closed economy keeps political affairs secret, while an open economy does not.

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Definitions:

Noncontrolling Interest

An ownership interest in a company that is less than 50%, usually reflected as a separate component of equity on a parent company’s balance sheet, representing the portion of its subsidiaries not owned by the parent.

Dividends

Distributions made from a company's earnings to its shareholders, typically in the form of cash.

Consolidated Statement

A financial report that combines the financial results of a parent company and its subsidiaries, presenting the financials as a single entity.

Consolidated Net Income

The total net income of a parent company and its subsidiaries after adjusting for inter-company transactions and minority interests, presented in consolidated financial statements.