Which of the Following Correctly Describes a Closed Economy

question 89

Multiple Choice

Which of the following correctly describes a closed economy?

• A) In a closed economy, consumption by households is equal to zero.
• B) A closed economy is one where there is no government sector.
• C) In a closed economy, investment by domestic firms is equal to zero.
• D) A closed economy is one that depends entirely on domestic consumption and investment.

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Definitions:

Entitativity

The degree to which a group is perceived as being a coherent and distinct entity, with members sharing common characteristics or a common fate.

Uncertainty-Identity Theory

A theory suggesting that individuals form or join groups in order to reduce uncertainty about themselves and their place in the world.

System Justification Theory

The theory that negative stereotypes get attached to groups partly because they help explain and justify why some individuals are more advantaged than others.

Terror Management Theory

A theory which says that to minimize fear of mortality, humans strive to sustain faith that they are enduringly valued contributors to a meaningful world and therefore transcend their physical death.