Realization of gains from trade, entrepreneurial discovery, and investment are largely dependent on

Question

Quizplus · Accepted Answer

The presence of institutions and policies consistent with economic freedom, such as protection of property rights, free trade, and limited government intervention, creates an environment that encourages entrepreneurship and investment, and facilitates gains from trade. Competitive elections and political democracy may also be important, but they are not the sole determinant of economic growth and development. The use of tariffs and quotas may protect domestic businesses in the short run, but they also reduce competition and productivity, and may harm consumers through higher prices and reduced choice. The use of government planning is often inefficient and may lead to misallocation of resources.

Realization of Gains from Trade, Entrepreneurial Discovery, and Investment Are