Activity 01
Data Analysis: Economic Freedom vs. Income
Provide students with excerpts from the Index of Economic Freedom showing a range of countries alongside per capita GDP data. Students plot freedom scores against income, identify outliers, and discuss what the scatter plot does and does not prove about causation before the class compares findings.
Analyze the correlation between economic freedom and per capita income.
Facilitation TipDuring Data Analysis: Economic Freedom vs. Income, circulate as students calculate correlations and remind them to question outliers rather than forcing a single trend line.
What to look forPose the question: 'Given the strong correlation between economic freedom and per capita income, what are the most critical government actions needed to foster economic freedom in a developing nation?' Students should cite specific examples from their research.