An Economy That Does Not Trade with the Rest of the World

question 190

Multiple Choice

An economy that does not trade with the rest of the world is known as a(n) ________ economy.

• A) open
• B) closed
• C) command
• D) communist

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Definitions:

Supplies

Items that are consumed during the operation of a business, such as office supplies, which are essential for day-to-day activities but not directly tied to the product being sold.

Accounts Payable

A liability account that records amounts a company owes to suppliers for goods or services purchased on credit.

Withdrawals

Amounts of money taken out from a business by its owner(s) for personal use, not considered business expenses.

Credit Side

The right side of an accounting ledger where increases in liabilities, equity, and income or decreases in assets and expenses are recorded.