Why is the fear of expropriation an obstacle to economic growth?
a. Without research and development, no technological advances can be made.
b. Large government spending causes negative externalities.
c. Powerful special interest groups have too much control.
d. No foreign investment comes to the country, because of the lack of guarantees.
e. The fear of expropriation causes too many resources to be devoted to military spending which is a highly unproductive sector.
d
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One standard method of determining just compensation is the comparable sales method. What is the comparable sales method, and why might some individuals perceive this method to be unfair?
What will be an ideal response?
On the graph above, an increase in government spending, with no change in taxes, is likely to move the economy from point 1 to point ________
A) 8 B) 6 C) 3 D) 5