Adam Smith published The Wealth of Nations in 1776. In it, he argued that when institutions protect the liberty of individuals, greater prosperity results for all. Since 1995, the Wall Street Journal and the Heritage Foundation, a think tank in Washington, D.C., have produced the Index of Economic Freedom for ll countries in the world. The index is based on a subjective score for 10 freedoms. These are business freedom, trade freedom, fiscal freedom, government size, monetary freedom, investment freedom, financial freedom, property rights, freedom from corruption, and labor freedom. We downloaded the scores for 2013. From the CIA Factbook, we determined the per capita gross domestic product (GDP), measured in terms of purchasing power parity (PPP), which makes it possible to compare the GDP for all countries. The per capita GDP PPP figures for 2012 were used. Both sets of data are stored in C03-02. Use a graphical technique to see how freedom and prosperity are related.

  • CreatedFebruary 03, 2015
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