Question

Difference between open economy and closed economy

Answer 1

Answer:



Amity University

BBA

BBA 104

8 Differentiate between a closed economy and an open economy Ans Following are

8 differentiate between a closed economy and an open

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8. Differentiate between a closed economy and an open economy.Ans. Following are the main differences between a closed economy and open economy:Closed EconomyOpen Economy1. A closed economy is that economy which has not economic relations with other countries of the world.An open economy is that economy which has economic relations with other countriesof the world.2. In a closed economy the domestic product and natural product are equal.In open economy the domestic product and national product may be different.3. Closed economy is not a realistic concept.Open economy is a realistic concept.

Answer 2

Answer:close economy is an economy which does not have any sort of economic relatuon with rest of the world but is confined to itself.

Open economy is economy which is not onlt involved in the process of production within its domestic territory but also can particilate in production anywhere in the rest of the worl.

Hope it helps you.

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