If a Country Is Going to Achieve a High Economic

question 107

Multiple Choice

If a country is going to achieve a high economic freedom rating, it must

• A) follow rule of law principles and create a stable monetary environment.
• B) be a political democracy.
• C) refrain from the imposition of barriers that limit voluntary exchange.
• D) rely primarily on government expenditures and regulations (rather than markets) to allocate goods and resources.
• E) both a and c are true.

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Definitions:

Production

The process of creating, manufacturing, or generating goods and services.

Goods and Services

Goods and services are the outputs of economic activity: goods are physical items that can be purchased, while services are activities performed by others for a fee.

Governments

The organizations or systems that govern a particular territory, responsible for creating and enforcing laws, policies, and regulations.

Leading Industries

The primary sectors of an economy that drive its growth, characterized by high levels of productivity and innovation.