The major difference between a closed economy and an open economy is that a(n)
a. closed economy balances budget, while an open economy does not.
b. open economy is a market economy, while a closed economy relies on planning.
c. open economy interacts with the rest of the world, while a closed economy does not.
d. closed economy keeps political affairs secret, while an open economy does not.
c
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Assume that the government can reduce car pollution using either a corrective tax or a regulatory scheme, both of which will achieve the same results in the short-run
In the long run, however, the regulatory scheme will be more efficient because it provides incentives to avoid the regulation altogether. a. True b. False
According to Figure 7.1, which of the following statements was definitely true about Country B?
A. The average price in general increased over the time period 1970 to 1995. B. The price level was about the same in 1970 and 1995. C. Relative prices were changing. D. Real incomes were increasing.