Closed Economy

An economy which is self sufficient and self reliant is known as

• Closed economy

• Agricultural economy

• Open economy

• Mixed economy

What is a closed economy?

• An economy that does not trade with other countries

• An economy that only exports goods

• An economy that only imports goods

• An economy that trades freely with all countries

Which of the following is a characteristic of a closed economy?

• High level of imports

• No international trade

• Dependence on foreign investment

• Free trade agreements

In a closed economy, which sector is primarily responsible for economic growth?

• Foreign sector

• Government sector

• Private sector

• External sector

What is the main advantage of a closed economy?

• Access to foreign markets

• Protection from global economic fluctuations

• Increased foreign investment

• Lower production costs

Which of the following is NOT a feature of a closed economy?

• Self-sufficiency

• No foreign trade

• High dependency on exports

• Limited external influence

How does a closed economy affect consumer choice?

• Increases variety of goods

• Limits variety of goods

• Has no effect on variety

• Encourages foreign goods

What is the role of government in a closed economy?

• To regulate international trade

• To promote exports

• To manage domestic resources

• To attract foreign investment

Which of the following best describes the flow of goods in a closed economy?

• Goods flow freely across borders

• Goods are only imported

• Goods are only exported

• Goods are produced and consumed domestically

What is a potential disadvantage of a closed economy?

• Exposure to global market risks

• Limited access to foreign technology

• Increased competition from abroad

• Dependence on foreign aid