When a Closed Economy Is Compared with an Open Economy

question 105

Multiple Choice

When a closed economy is compared with an open economy, what situation exists?

• A) Economic activity is directed entirely by the state in an open economy.
• B) Exports and imports are monitored and controlled, so there is never a trade imbalance in a closed economy.
• C) In a closed economy, because there are no exports or imports, no international transfers, and no service payments, GDP, GNE, GNI, and GNDI are all equal.
• D) GDP is always higher than GNE in an open economy because some goods remain unsold into the next accounting period.

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Definitions:

Bit Level

Bit level refers to the smallest unit of data in computing, dealing with operations and processes at the level of individual bits.

Word Level

Pertains to the handling or processing of data in units of words, typically a set number of bits processed together, such as 16 or 32 bits.

Value

A specific piece of data, often numerical, representing the magnitude, quantity, or importance of a variable or parameter in a process or calculation.

Source

The origin from which something comes, such as electricity in an electrical circuit, or data in an information system.