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The Belief That the Freedom to Determine Prices and Competition

question 47

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The belief that the freedom to determine prices and competition without the interference of the government or the guilds would result in the best economic outcome is called laissez-faire economics.


Definitions:

Correlation Coefficient

A statistical index measuring the strength and direction of a linear relationship between two variables.

Average Error

A statistical measure that averages the absolute differences between the observed values and the values predicted by a model.

Independent Variable

The variable that is manipulated in an experiment to observe its effect on the dependent variable.

Dependent Variable

A variable in an experiment or model that is expected to change in response to changes in independent variables.

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