11. Economic freedom as a measure of sound institutions Some countries have histories of Some countries have greater protection of private property, in part because colonizers had interests in those countries. Other things being equal, a country with a government with limited powers will most likely be productive than a country with a government with unchecked powers. True or False: Less-developed countries have a greater incentive to adopt sound institutions and policies as transportation and communication costs decrease. False True Which of the following are factors contributing to a decline of the Economic Freedom of the World (EFW) rating? Check all that apply. Government spending on transfer payments increased during this period. The private sector accounts for a greater share of credit than previously. Regulations on businesses were loosened during this period. True or False: Political decentralization makes it easier for governments to levy taxes and spend revenues on things that provide citizens with little value relative to cost. False True