A Country with No Trade and No Borrowing and Lending

question 93

Multiple Choice

A country with no trade and no borrowing and lending relationships with other countries is known as a(n)

• A)planned economy.
• B)market economy.
• C)open economy.
• D)closed economy.

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Definitions:

Commission

A fee paid to an agent or employee for transacting a piece of business or performing a service, especially a percentage of the money received from a total paid to the agent responsible for the business.

Human Capital

The total of competencies, wisdom, or intangible valuables of individuals that have the potential to yield financial value for the people, their places of employment, or their local area.

Labor-Market Discrimination

Occurs when two equally qualified individuals are treated differently based on arbitrary characteristics such as race, gender, religion, or nationality in employment decisions.

Compensating Differential

The additional amount of income that a worker requires to be indifferent between working in a job with undesirable conditions and a job with desirable conditions.