11. Economic freedom as a measure of sound institutions Some countries have histories of governments with exploitative political institutions, in part because colonizers had long-term interests in those countries. Other things being equal, a country with a government with limited powers will most likely be less productive than a country with a government with unchecked powers. True or False: Less-developed countries have a greater incentive to adopt sound institutions and policies as transportation and communication costs decrease. False True
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Step 1: Economic freedom is often considered a measure of sound institutions because it allows for individuals and businesses to operate with minimal government interference, leading to greater productivity and economic growth. Show more…
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