The concept of an open economy means that
A) imports should be limited while exports should be expanded.
B) a nation's borders are open to flows of imports and exports.
C) exports should be controlled but imports should be allowed in without restriction.
D) imports and exports should be restricted.

Question

Quizplus · Accepted Answer

An open economy means that a nation's borders are open to flows of imports and exports. This means that both imports and exports are allowed to flow freely, without restrictions or control. It promotes free trade and allows for greater international cooperation and economic growth. Option A and C restrict one of either imports or exports, while Option D restricts both, which goes against the concept of an open economy.

The Concept of an Open Economy Means That