Economics • Indian EconomyEasy
What does 'Open Economy' refer to in international economics?
A. An economy that engages in international trade of goods, services, and financial assets with other nations.✓ Correct Answer
B. An economy where all industries are privatized and deregulated.
C. An economic system with zero taxation and completely free markets.
D. An economy that operates without any central bank regulations.
💡 Solution & Explanation
An open economy is defined in macroeconomics as one that actively engages in international trade of goods and services, as well as capital and financial asset flows with foreign nations. Closed economies isolate themselves from external transactions entirely.
More Economics Indian Economy questions
- What is the main objective of the 'PM MITRA' (Mega Integrated Textile Region and Apparel) park scheme in…
- What does the 'National Infrastructure Pipeline' (NIP) launched by the Government of India aim to achieve?
- Which organization in India releases the 'Multidimensional Poverty Index (MPI)' at the national and…
- Which of the following indices is compiled and released by the National Statistical Office (NSO) in India?
- What is the primary focus of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)?