The consumption possibilities for a(n)____________ economy are equal to its production possibilities,while the consumption possibilities for a(n)______________ economy are typically greater than (and never less than)its production possibilities.

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Quizplus · Accepted Answer

In a closed economy, there is no trade with other countries, so the consumption possibilities are limited to what can be produced domestically. Therefore, the consumption possibilities are equal to its production possibilities. In an open economy, there is trade with other countries, which allows for access to a greater variety of goods and services. This means that the consumption possibilities are typically greater than the production possibilities.

The Consumption Possibilities for A(n)____________ Economy Are Equal to Its