An economy that does NOT trade with the rest of the world is a(n)
A. open economy.
B. command economy.
C. closed economy.
D. trade economy.
Answer: C
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Which of the following is false?
A. Even if a corporation is not currently issuing bonds, you could still buy a bond directly from the corporation. B. Bonds that are rated AAA from Standard and Poor's have received the highest rating possible. C. A bond that is rated in the D category indicates that the bond issuer cannot pay off the bond. D. It is possible to buy a bond from someone who purchased and still holds the bond he bought from the corporation at an earlier date.
Answer the following statements true (T) or false (F)
1. Higher price levels are associated with lower aggregate expenditure at every level of income. 2. The classical economists held that chronic unemployment was likely. 3. According to the classical economists, demand creates its own supply. 4. Keynes suggested that Say’s Law did not apply to a monetary economy because many individuals hold money as saving instead of spending it. 5. Keynes stated that equilibrium could exist at any level of employment or unemployment.
The open-economy macroeconomic model examines the determination of
a. the output growth rate and the real interest rate. b. unemployment and the exchange rate. c. the output growth rate and the inflation rate. d. the trade balance and the exchange rate.
Several reform options have been discussed by Congress to solve some of the structural problems that plague the program. Which of the following options has received little support?
a. Instead of the current open-ended structure of the program, provide premium support directly to individuals allowing them to purchase the plan of their choice. b. To simplify the benefit structure, roll Parts A, B, and D into one plan with one deductible and uniform coinsurance rates. c. Limit the coverage for end-of-life care, the most expensive single item in Medicare, to include only essential palliative care. d. Place limits on the purchase of complementary Medigap insurance that provides first-dollar coverage to pay deductibles and coinsurance. e. Raise the eligibility age gradually much like the changes that were made to Social Security eligibility.