A Closed Economy Is One in Which

question 45

Multiple Choice

A closed economy is one in which

• A) imports exactly equal exports, so that trade is balanced.
• B) domestic firms invest in industries overseas.
• C) the home economy is isolated from foreign trade.
• D) technological innovations and improvements in the efficiency of international transport are highly valued.

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Definitions:

Hotel Accommodations

Lodging and room services provided by hotels to travelers, which can vary widely in terms of quality, amenities, and price.

Meals

The food that is prepared and served, typically at regular occasions or times during the day, such as breakfast, lunch, or dinner.

Budgets

Detailed plans that outline expected income and expenditures over a specific period, often used by individuals, organizations, or governments to manage finances.

Marginal Rate

The rate at which one quantity changes relative to a change in another quantity.