Transcript Chapter 1 - Wealth of Nations

The Wealth of Nations:
Ownership and Economic
Freedom
CHAPTER 1
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Wealth of Nations
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Per Capita Income
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Ownership
◦ Ownership allows trade to take place and creates an
incentive to take care of what is owned
◦ Private property rights are rights to do anything you want
with what you own as long as it does not harm the
property of others
◦ Legal recognition of ownership through titles is necessary
to ensure that owned property can be freely bought and
sold and used as collateral for loans
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GDP Per Capita in the United
Kingdom
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Per Capita GDP in Select
Countries
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Economic Freedom
◦ Economic freedom is the ability to engage in voluntary trade
without interference or restrictions by government or outside
parties
◦ In an economically free society, individuals are free to work,
produce, consume, and invest in any way they please
◦ In general, the greater a nation’s economic freedom, the
higher its standard of living
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Ten Most Economically Free
Countries
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Standard of Living
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Human Development
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