A private closed economy includes

Incorrect Question 1 A private closed economy includes: households only. households, businesses, and government, but not international trade. households and businesses, but not government or international trade. households, businesses, and international trade, but not government. 0/0.12 pts

Answer

Ans: households and businesses, but not government or international trade.

Explanation:

A private economy includes only households sector and business sector. This is called two sector circular flow model. A private closed economy is one where a nation does not have any international relation with other nations. It means there is no export and import.

Leave a Comment