Question

A closed economy is

Answer 1

A closed economy is one that has no exports or imports. An open economy is one that has exports and imports. In a closed economy, domestic quantity and domestic price entirely determine producer surplus and consumer surplus.

In a closed economy, equilibrium price and equilibrium quantity determine consumer surplus and producer surplus. It is self-sufficient closed economies are more likely to be less developed if they lack internal services of some raw materials, such as oil, gas and coal.