Chapter 18, Problem aFCT

To determine

How does the government regulation policies limits economic freedom and potentially results in slow economic growth? Does reducing the range of people’s choices expand or limit the economic freedom?

Concept introduction:

The economic freedom is to succeed in a nation without mediation from an administration or financial expert. People are allowed to secure and ensure his/her human resource, work and private property. Financial flexibility is basic in entrepreneur economies and must consolidate other common freedoms to be considered as genuinely free.

It is estimated as far as the arrangement of financial decisions accessible to people. This is more noteworthy when people have more monetary options accessible − when, in some specialized sense, the decision set of people grows. In any case, a comprehension of monetary opportunity as far as abilities to seek after a scope of objectives is critical.

Generally, countries with higher economic freedom have higher gross domestic product per capita and its growth rates, as well as better health care, education quality, environment protection, income equality, and happiness results. These trends of increasing prosperity are confirmed even when we compare these indicators within territories of countries.