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:

Arbitration

A form of dispute resolution where an impartial third party, the arbitrator, makes a decision on a dispute outside the court system.

Arbitrator

A neutral third party who resolves disputes between two other parties, making decisions that are usually binding.

Unionization

The process of organizing the employees of a company into a labor union to negotiate wages, working conditions, and other employment terms.

Union-Management Negotiation

The process in which labor union representatives and company management discuss and agree on workplace conditions, wages, and policies.