Because the product of any two elements is also an element of the set.
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Is { 0, 20 } closed under multiplication
No; here's a counterexample to show that the set of irrational numbers is NOT closed under subtraction: pi - pi = 0. pi is an irrational number. If you subtract it from itself, you get zero, which is a rational number. Closure would require that the difference(answer) be an irrational number as well, which it isn't. Therefore the set of irrational numbers is NOT closed under subtraction.
All the elements in a group must be invertible with respect to the operation. The element 0, which belongs to the set does not have an inverse wrt multiplication.
I believe it is because 0 does not have an inverse element.
Yes, unless the number used for multiplication is 0. In that case you will have 0/0 which is not defined.