In the following figure, the first panel shows a market situation prior to regulation and the second panel shows the effects of regulation.Figure 14.2
In the figure,
D: Demand curve for automobiles
S 1 : Supply curve of automobiles prior to regulation
S 2 : Supply curve of automobiles after regulation
FG: Clean up cost per unit
-Which of the following raises the economic freedom of a country?

Question

In the following figure, the first panel shows a market situation prior to regulation and the second panel shows the effects of regulation.Figure 14.2
  In the figure,
D: Demand curve for automobiles
S 1 : Supply curve of automobiles prior to regulation
S 2 : Supply curve of automobiles after regulation
FG: Clean up cost per unit
-Which of the following raises the economic freedom of a country?

Quizplus · Accepted Answer

Reduction of trade barriers like tariffs and quotas can increase economic freedom by promoting international trade and competition, which can lead to greater efficiency and lower prices for consumers. This also allows for countries to specialize in areas where they have a comparative advantage.

In the Following Figure, the First Panel Shows a Market