Question

What restriction would the government imposed in a closed economy?

Answer 1

Answer: The government would ban or prohibit trade with other countries.

Explanation:

A closed economy is known to be an economy which does not trade or transact business with other nations or countries. In other words, the economy does not import goods from other countries into the country and does not export goods to other countries. Thus, the economy depend on the goods and services produced in the country which makes them self sufficient. This is done in order to encourage and make provision for the growth of domestic or local industries within the country.

Answer 2

The government would prohibit trade with other nations.