Asked by Taylor Whitworth on Jul 04, 2024
Verified
Which of the following variables of economic freedom index in the Heritage Foundation determines the extent to which the government of a country may interfere in business processes?
A) Labor freedom
B) Fiscal freedom
C) Investment freedom
D) Trade freedom
Economic Freedom Index
An annual index that measures a country's economic freedom based on factors such as trade freedom, business freedom, investment freedom, and property rights.
Investment Freedom
The ease with which individuals and corporations can allocate their resources without facing excessive regulatory hurdles.
Trade Freedom
A measure of the absence of trade barriers that affect imports and exports, such as tariffs and quotas.
- Comprehend the factors that contribute to a country's economic freedom.
Verified Answer
MG
Manal GendyJul 10, 2024
Final Answer :
B
Explanation :
Fiscal freedom is a measure of the extent to which the government allows tax competition and does not impose high tax rates on businesses, which directly affects the level of government interference in business processes.
Learning Objectives
- Comprehend the factors that contribute to a country's economic freedom.