A Private _____ Economy is a Private Economy That Includes International Trade in Its GDP

A Private _____ Economy is a Private Economy That Includes International Trade in Its GDP

A) Open

B) Mixed

C) Command

D) Closed

The Correct answer is Open

A private open economy is a private economy that actively engages in international trade and includes the value of these international transactions in its Gross Domestic Product (GDP). This indicates that the economy is open to the global market and participates in imports and exports, making it an open economy.

What is a Private Open Economy?

A private open economy is a system where a country trades with other nations and doesn't have government-run businesses. In this kind of economy, people from other countries can own companies in the country, and citizens can invest their money abroad.

Open economies like when countries exchange things they make, share business ideas, and use new technology from other places. They can have different ways of deciding how much their money is worth compared to money from other countries.

Open economies are also called free economies. They're different from closed economies, which try to keep most of their business inside their own country to be self-sufficient.