Author Question: What is economic freedom and why is it important for economic growth? What will be an ideal ... (Read 161 times)

cookcarl

  • Hero Member
  • *****
  • Posts: 539
What is economic freedom and why is it important for economic growth?
 
  What will be an ideal response?

Question 2

If a producer can use resources to produce either good A or good B, then A and B are
 
  A) complements in production.
  B) substitutes in production.
  C) substitutes in consumption.
  D) complements in consumption.



jjorrostieta

  • Sr. Member
  • ****
  • Posts: 298
Answer to Question 1

Economic freedom is a condition when people are able to make their own choices, their private property is protected, and they are free to trade in markets. Economic freedom is a necessary precondition for economic growth because all three aspects of economic freedom are highly growth enhancing. People are the best judges of their own interests and abilities, so allowing them to make their own decisions creates the best decisions about what activities will be undertaken. Protecting private property is necessary in order to give people the incentives to specialize and trade as well as to save and invest, all actions that will increase economic growth. Letting people trade in free markets again respects people's abilities to make the best decisions for themselves, and also increases people's incentives to specialize and trade.

Answer to Question 2

B



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Illness; diuretics; laxative abuse; hot weather; exercise; sweating; caffeine; alcoholic beverages; starvation diets; inadequate carbohydrate consumption; and diets high in protein, salt, or fiber can cause people to become dehydrated.

Did you know?

The training of an anesthesiologist typically requires four years of college, 4 years of medical school, 1 year of internship, and 3 years of residency.

Did you know?

Every 10 seconds, a person in the United States goes to the emergency room complaining of head pain. About 1.2 million visits are for acute migraine attacks.

Did you know?

Everyone has one nostril that is larger than the other.

Did you know?

Addicts to opiates often avoid treatment because they are afraid of withdrawal. Though unpleasant, with proper management, withdrawal is rarely fatal and passes relatively quickly.

For a complete list of videos, visit our video library