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Economic Freedom and Wealth

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Economic Freedom and Wealth

GB540-05 Unit 2 Assignment

11/06/2012

Introduction

Economic Freedom is an individual or corporation’s ability to exchange any goods or services without being forced to do so. Since everyone does not think or respond to a specific situation alike, each person is granted the freedom to respond in a manner they feel is appropriate and beneficial to his or her current situation. Economic freedom is heavily dependent on characteristics such as empowering individuals, an open competitive market, and does not discriminate in order to allow all parties involved a chance to be successful.

Economic Freedom Index

In Heritage Foundation’s release of the 2012 Index of Economic Freedom, the top ten countries range from Hong Kong to the United States. Economic freedom is determined by evaluating 10 components to arrive at the final index number. Each component is scored on a scale between 0 and 100 with zero being the lowest score and 100 being the highest. The overall economic freedom index number is an average of the 10 individual freedoms. In an effort to increase the understanding and readability of the economic freedom index, the 10 economic freedoms were grouped into four categories. The table below lists the 10 economic freedoms and the category in which it is classified under.

|Rule of Law |Limited Gov’t |Regulatory Efficiency |Open Markets |
|Property Rights |Fiscal Freedom |Business Freedom |Trade Freedom |
|Freedom from Corruption |Government Spending |Labor Freedom |Investment Freedom |
|…...

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