Use the Following to Answer Questions

question 103

Multiple Choice

Use the following to answer questions:
Figure: Economic Freedom and Living Standards
-(Figure: Economic Freedom and Living Standards) Refer to the figure. Based on this chart, we can conclude that:

• A) greater economic freedom causes a higher standard of living.
• B) there is a positive relationship between economic freedom and GNI per capita.
• C) higher GNI per capita raises the level of democracy.
• D) the wealthiest countries in the world are all democracies.

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Definitions:

Wage Increases

Adjustments upwards in the compensation that workers receive for their labor, often reflecting economic conditions, productivity, and negotiation outcomes.

Union Members

Individuals who belong to a labor union, an organization that represents workers' interests in negotiations with employers.

Exclusive Union

A labor union arrangement where only members of the union can be employed by the firm or within a certain industry.

Market Imperfections

Any departure from the ideal conditions of perfect competition that prevents the efficient allocation of resources.