In terms of which party or parties capture any gains from a land transaction, what is the difference when land is acquired through eminent domain and when land is acquired through the bargaining process?
What will be an ideal response?
When land is acquired through the bargaining process, both the seller of the land and the purchaser of the land share in the gains that result from the transaction. With eminent domain, only the new owner of the land captures any gains.
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The marginal product is the incremental change in total output that can be obtained from the use of one more unit of an input in the production process, while varying all other inputs
a. True b. False Indicate whether the statement is true or false
The liquidity trap refers to the
A) assumption that the money supply curve is vertical as a result of the Fed's control. B) problem that occurs when interest rates reach such high levels that no individuals want to hold their wealth in the form of money. C) situation that occurs when an excess supply of money results in people holding more money than they desire. D) possibility that interest rates drop so low that people willingly hold all the additions to the money supply, rather than use it to buy bonds.