What restriction would the government impose in a closed economy
Answers
The government in a closed economy may impose a restriction on foreign trade . This restriction reflects upon the mental state of the goverment which can be termed as a protective measure for the country . The government directs the people that they are self-sufficient and do not require outside aid in order to produce all that is necessary for a good life. The Democratic People’s Republic of North Korea and the former Union of Soviet Socialist Republics are notable examples of closed economies
A closed economy can be defined as a country that is self sufficient and has no trade activities with the outside countries.
This means the country cannot indulge in imports or exports.
Thus, the restriction imposed by the government in a closed economy is not to trade with other countries.