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:

Disciplinary Actions

Measures taken by employers against employees for violating rules or policies, aimed at correcting behavior or enforcing standards.

Management

The process of dealing with or controlling things or people, often within an organizational setting, including planning, decision-making, and overseeing operations.

Productivity

A measure of the efficiency of production, often expressed as the ratio of outputs to inputs in the production process.

Nonunionized Companies

Businesses where the workforce is not represented by a labor union, and where bargaining and negotiations are conducted individually rather than collectively.