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:

Book Value

The net value of a company's assets minus its liabilities, as recorded on the balance sheet.

Poison Pill

A defensive strategy used by corporations to deter hostile takeovers by making the company less attractive to the potential acquirer.

Control

In a business context, the ability to direct the management and policies of a company, often through the ownership of a majority of shares.

Shareholders

Individuals or entities that own one or more shares of stock in a corporation, thus having partial ownership and interest in the company.