« previous next »

Author Question: What is economic freedom and why is it important for economic growth? What will be an ideal ... (Read 159 times)

cookcarl

  • Hero Member
  • *****
  • Posts: 539
on: Jun 29, 2018
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
Reply #1 on: Jun 29, 2018
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
« previous next »
 

Did you know?

Pink eye is a term that refers to conjunctivitis, which is inflammation of the thin, clear membrane (conjunctiva) over the white part of the eye (sclera). It may be triggered by a virus, bacteria, or foreign body in the eye. Antibiotic eye drops alleviate bacterial conjunctivitis, and antihistamine allergy pills or eye drops help control allergic conjunctivitis symptoms.

Did you know?

Elderly adults are living longer, and causes of death are shifting. At the same time, autopsy rates are at or near their lowest in history.

Did you know?

There used to be a metric calendar, as well as metric clocks. The metric calendar, or "French Republican Calendar" divided the year into 12 months, but each month was divided into three 10-day weeks. Each day had 10 decimal hours. Each hour had 100 decimal minutes. Due to lack of popularity, the metric clocks and calendars were ended in 1795, three years after they had been first marketed.

Did you know?

In the United States, an estimated 50 million unnecessary antibiotics are prescribed for viral respiratory infections.

Did you know?

Side effects from substance abuse include nausea, dehydration, reduced productivitiy, and dependence. Though these effects usually worsen over time, the constant need for the substance often overcomes rational thinking.

Growth of a bacterial colony. Growth of a bacterial colony.
Increasing access to care for teen mothers is important because they have a higher rate of pregnancy ... Increasing access to care for teen mothers is important because they have a higher rate of pregnancy ...
Washing hands and removing jewelry are two important safety habits all service technicians ... Washing hands and removing jewelry are two important safety habits all service technicians ...
Ocean sediment cores preserve a record of ice sheet growth and decay Ocean sediment cores preserve a record of ice sheet growth and decay
IPCC models are based on projections of growth IPCC models are based on projections of growth
economic question economic question
Video: HDL (high density lipoprotein)

For a complete list of videos, visit our video library