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Juli2301 [7.4K]
3 years ago
15

Compared to countries with less economic freedom, countries with more economic freedom achieve higher per person income levels,

but they also have higher poverty rates.grow more rapidly, but the income levels of the poor are largely unaffected by the higher growth rates of the freer economies.achieve both higher income levels per person and lower rates of poverty.grow less rapidly and experience higher poverty rates.
Business
1 answer:
UkoKoshka [18]3 years ago
7 0

Answer:

<em><u>The correct answer is:</u></em> Achieve higher per person income levels, but they also have higher poverty rates.

Explanation:

What happens is that in countries with greater economic freedom, there is the free market, which is an economic form of the capitalist system that allows trade to be conducted free of external forces, being guided by the law of supply and demand. This system allows greater economic interaction with internal and external economic agents whose main objective is to generate profits.

The strong industrialization resulting from the capitalist system causes the greatest economic growth in a country and can increase the levels of per capita income, but it also generates greater social inequality that directly affects the growth of poverty rates. Generally, the main indicators of economic growth, such as GDP, have some limitations to indicate the distribution of wealth because they do not consider variables that include the well-being of the population.

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