Question

A/An _____________ economy is an economy which does not engage in international trade.

• A. open
• B. developing
• C. closed
• D. developed

Answer 1

Answer: (C)

closed

A closed economy is one that has no trading activity with outside economies. The closed economy is therefore entirely self-sufficient, which means no imports come into the country and no exports leave the country. The closed economy is self-sufficient, which means no imports come into the country and no exports leave the country. The purpose of a closed economy is to provide domestic consumers with everything they need from within the country's borders.