With Respect to Economic Freedom, Which Is True

question 103

Multiple Choice

With respect to economic freedom, which is true?

• A) Three out of four people live in nations with governments that grant residents high degrees of economic freedom.
• B) Where governments do not grant residents a high degree of economic freedom, economic growth rates tend to be above the annual average for the world's nations.
• C) About three dozen nations with governments unwilling to grant much in the way of economic freedom are home to two-thirds of the world's population. Even so, these countries produce over 50 percent of the world's output.
• D) As economic freedom increases, so does a nation's prospects for economic growth.

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Definitions:

Comparative Advantage

The ability of an individual, firm, or country to produce a particular good or service at a lower opportunity cost than others.

Production Possibilities

The various combinations of goods and services that an economy can produce given its available resources and technology.