Explain the role of economic freedom in economic development
What will be an ideal response?
Economic freedom is a measurement of the extent to which one can pursue economic activity without interference from government. Economic freedom is based upon personal choice, voluntary exchange, and the security of property rights. Economic freedom stimulates economic growth when the markets are competitive. Greater economic freedom encourages investment, which in turn, creates jobs and economic growth.
You might also like to view...
If an economy tried to use bananas as money, which function would bananas likely have the most difficult time fulfilling?
A) a store of value B) a unit of account C) a medium of exchange D) a means of payment
To improve package delivery, one change UPS made involved taking better account of weather forecasts to avoid delays in flying packages. This is an example of
A) positive technological change. B) diseconomies of scale. C) increasing marginal returns. D) a reduction in fixed costs.