In Order to Achieve a High Economic Freedom Rating, a Country

question 59

Multiple Choice

In order to achieve a high economic freedom rating, a country must

• A) elect political officials democratically.
• B) protect property rights, enforce contracts even-handedly, and rely extensively on markets to allocate goods and services.
• C) provide citizens with housing, health care, and other basic goods free of charge.
• D) use the taxing power of the state to redistribute income from the rich to the poor and thereby promote income equality.

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Definitions:

Market Supply Curve

A graphical representation that shows the relationship between the price of a good and the total output that producers are willing and able to sell at that price.

Acceptable Prices

Prices that consumers feel are fair for products or services, and are willing to pay.

Total Revenues

The overall amount of money received by a firm from sales of its products or services, before any costs are deducted.

Equilibrium Point

The condition in a market where the supply of goods matches demand, leading to a stable price and quantity for the good or service.