Question

5. In "Clear It Up: What countries are considered economically free", we see a list of countries that are have the most and least economic freedom based on the 2015 Heritage Foundation's Index of Economic Freedom. a. Why do you think economic freedom would play a role in how productive a country will be? b. Based on learning the difference between a market-oriented country and a command-oriented country, would countries with the most economic freedom be more likely to be market-oriented or command-oriented? Explain your rationale.

Answer 1

By the term economic freedom we mean there are no borders for domestic and international exchange of products and services all across the world or nation or basically your trading partners.

so if we think on the perspective of the productive decision is , when there are no restrictions , no control so there is no such binding force on what type of good to be produced and of what quality , also producers may decide it on their own resoecting the interest of consumers.
secondly, they will be more focussed on the needs of tgeir trading partners, what are their preferances.
thirdly, producers are relatively free of burden and the pressure on them.

fourthly, from the economy perspective nation will think of producing more of war goods, focusing security of country.