What is the Economic Freedom of the World index designed to measure? What will determine whether the rating of a country will be high or low on this index?
The Economic Freedom of the World index is design to measure the consistency of a nation's institutions and policies with personal choice, voluntary exchange through markets, freedom to enter and compete, and protection of people and their property from aggressors. In order to score highly on this index, a nation must protect property rights and enforce contracts even-handedly, provide access to a currency of stable value, rely primarily on markets to allocate goods and resources, keep tax rates low, and avoid regulations that restrict voluntary exchange and the freedom to compete in markets.
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After having a monopoly in the diamond market for many years, by 2000 the De Beers company faced competition from other companies. To maintain its market share, De Beers
A) lowered the prices of its diamonds to make the market appear less profitable to potential competitors. B) began buying so-called "blood diamonds" in order to keep these diamonds out of the control of other diamond companies. C) bought diamond mines in Canada and Russia that had been its competitors. D) adopted a strategy of differentiating its diamonds. Each of its diamonds is now marked with a microscopic brand.
The Fed's liabilities include
What will be an ideal response?
Holding everything else constant, the absolute value of the price elasticity of demand for Saucony tennis shoes is ________ the price elasticity of demand for tennis shoes in general
A) less than B) equal to C) twice as great as D) greater than
Relating to the Economics in Practice on page 340: Europe has a carbon tax, and electricity producers are among the largest of the carbon producing firms. The carbon tax increases the costs of the electricity producers, which will shift the ________ curve in the electricity market to the ________.
A. demand; right B. demand; left C. supply; right D. supply; left