Which of the following is not true about an open economy?
1. Free from trade barriers
2. No imports are brought in and no exports are sent out
3. Exports and imports form a large percentage of the GDP
4. Self sufficient
Choose the correct answer from the codes given below.

2 and 4

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1 and 2

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3 and 4

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All of these

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Solution

The correct option is A 2 and 4
An open economy promotes free movement of goods or services in and out of the country. The country imports goods or services it lacks in (it is not self-sufficient) and exports goods and services in which it has competitive advantage. Consequently exports and imports form large part of the country's GDP..

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Which of the following is not true about an open economy?1. Free from trade barriers2. No imports are brought in and no exports are sent out3. Exports and imports form a large percentage of the GDP4. Self sufficientChoose the correct answer from the codes given below.

Which of the following is not true about an open economy?
1. Free from trade barriers
2. No imports are brought in and no exports are sent out
3. Exports and imports form a large percentage of the GDP
4. Self sufficient
Choose the correct answer from the codes given below.