If an Economy Is Closed and If It Has No

question 611

Multiple Choice

If an economy is closed and if it has no government, then

• A)national saving = private saving.
• B)total income = consumption + investment.
• C)saving = total income - consumption.
• D)All of the above are correct.

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Definitions:

General Equilibrium

A condition in an economy where all markets are in equilibrium simultaneously, and there are no external forces causing shifts in supply and demand.

Equilibria

The condition in which all competing influences are balanced in a wide variety of contexts, including economics where supply equals demand.

Markets

Systems, institutions, or environments where buyers and sellers interact to exchange goods, services, or information.

Technological Change

Adjustments or improvements in the method of production, invention, and innovation in processes that often lead to increased productivity.