We Call an Economy That Is Self-Contained and Does Not

question 37

Multiple Choice

We call an economy that is self-contained and does not engage in any trade with outsiders a(n) :

• A) autarky.
• B) oligopoly.
• C) oligarchy.
• D) monarchy.

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Definitions:

External Costs

Costs that are not reflected in the market price of goods or services, often borne by society.

Efficient

Describes a system or process that operates in a way that maximizes productivity or output with minimal waste or expense.

External Cost

A cost that is not borne by the parties involved in an economic transaction, often affecting third parties.

Zoning Restrictions

Legal regulations governing how land within certain areas can be used, intended to separate residential property use from commercial and industrial uses.