Why Is the Fear of Expropriation an Obstacle to Economic

question 29

Multiple Choice

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.

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Definitions:

Original Cost

The initial purchase price or investment made to acquire an asset, not accounting for depreciation or amortization.

Asset Improvements

Expenditures made to increase the usefulness or value of a fixed asset.

Ordinary Maintenance

Routine and regular upkeep activities required to maintain or preserve assets in their original condition, preventing deterioration over time.

Asset Improvements

Asset improvements involve the enhancement or upgrade of an asset, increasing its value or extending its useful life, without necessarily changing its original purpose.