An open economy is a national economy that
A)doesn't interact economically with the rest of the world.
B)has a stock market that is open to traders from anywhere in the world.
C)has extensive trading and financial relationships with other national economies.
D)has established diplomatic relations with most other national economies.

Question

Quizplus · Accepted Answer

An open economy is one that has extensive trading and financial relationships with other national economies, meaning it interacts economically with the rest of the world. Therefore, the correct choice is C. Choices A, B, and D are incorrect because they do not fully capture the definition of an open economy.

An Open Economy Is a National Economy That