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Which of the following are used to calculate economic freedom of a country?
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- Rule of Law, Regulatory Efficiency, Market Openness, Government Size
- Gross domestic product, Regulatory Efficiency, Market Openness, Foreign Direct Investment
- Rule of Law, Inflation, Gross domestic product growth rate, Government Size
- Rule of Law, Regulatory Efficiency, Inflation, Foreign Direct Investment
- Rule of Law, Regulatory Efficiency, Market Openness, Government Size
Correct Option: D
The economic freedom of a country is calculated using the Economic Freedom Index that focuses on four key aspects of the economic environment over which governments typically exercise policy control: l Rule of law (property rights, freedom from corruption); l Government size (fiscal freedom, government spending); l Regulatory efficiency (business freedom, labor freedom, monetary freedom); and l Market openness (trade freedom, investment freedom, financial freedom).
