A closed economy refers to an economy in which:
A. a country exports, but does not allow imports.
B. all goods are produced and sold domestically.
C. intermediate goods are sold domestically.
D. all goods are consumed domestically.
Answer: B
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The above figure shows the U.S. market for flip-flops. With international trade, the equilibrium price in the United States is ________ and the United States ________ flip-flops
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