What is the difference between an open economy and a closed economy?
A) A closed economy has sealed borders and allows no tourism or migration.
B) An open economy has very few restrictions on trade or financial flows.
C) A closed economy has very tough wage and hour laws and will not tolerate labor unions.
D) An open economy has lax restrictions on drugs or other illegal activities.

Question

Quizplus · Accepted Answer

An open economy has very few restrictions on trade or financial flows, whereas a closed economy has more restrictions and may limit trade and financial interactions with other countries. The other answer choices are not accurate descriptions of the differences between open and closed economies.

What Is the Difference Between an Open Economy and a Closed