The Dictator of Turan Has Recently Begun to Arbitrarily Seize

question 45

Multiple Choice

The dictator of Turan has recently begun to arbitrarily seize farms belonging to his political opponents, and he has given the farms to his friends. His friends don't know much about farming. The courts in Turan have ruled that the seizures are illegal, but the dictator has ignored the rulings. Other things equal, what would we expect to happen to the growth rate in Turan?

• A) It will fall temporarily, but will return to where it was when the new owners learn how to farm.
• B) It will increase because the total amount of human capital in the country will increase as the new owners learn how to farm.
• C) It will fall and remain lower for a long time because other farmers may expect their farms to be seized as well, and therefore they do not improve their farms.
• D) It will increase because friends can better cooperate with each other, avoiding wasteful competition.

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Definitions:

Confidence Coefficient

The degree of certainty or probability that a specified parametric interval will contain the true value of an unknown population parameter.

Power of the Test

The probability that the test will correctly reject a false null hypothesis, essentially reflecting the sensitivity of the test.

Population Parameter

A numerical value that summarizes a characteristic of an entire population.

Statistical Inference

The process of drawing conclusions about a population's characteristics based on a sample drawn from it.