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:

Sensitivity

The quality of being easily influenced, changed, or damaged, especially by external factors or conditions.

Industry

The sector of an economy involved in the production of goods and services.

Inferiority

A feeling of lower standing in relation to others, which can affect an individual's self-esteem and social interactions.

Competence

Refers to having the necessary ability, knowledge, or skill to perform a task successfully.