Economic Structure: Closed vs. Open Economy
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Questions and Answers

What is the defining characteristic of a closed economy?

  • Involves both imports and exports of goods and services
  • Actively participates in international trade
  • Receives foreign aid and remittances
  • Self-sufficient and does not interact with other countries (correct)

    • What can significantly impact the economic landscape of open economies?

  • Participation in international trade
  • Self-sufficiency
  • Receiving foreign aid and remittances (correct)
  • Lack of interaction with other countries

    • Which of the following best describes an open economy?

  • Receives foreign aid and remittances
  • Actively participates in international trade (correct)
  • Does not participate in international trade
  • Is self-sufficient and does not interact with other countries

    • In the context of economies, a closed economy is characterized by which of the following?

    <p>A self-sufficient economy that does not engage in international trade</p> Signup and view all the answers

    What is the main distinguishing feature of an open economy compared to a closed economy?

    <p>Active participation in international trade</p> Signup and view all the answers

    Which factor significantly impacts the economic landscape of open economies, as mentioned in the text?

    <p>Foreign aid and remittances</p> Signup and view all the answers

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