Which of the Following Is True Regarding Confiscation, Expropriation, and Domestication

question 24

Multiple Choice

Which of the following is true regarding confiscation, expropriation, and domestication?

• A) The ultimate goal of domestication is to force domestic investors to share more of the profits with the government.
• B) Risks of confiscation and expropriation appear to have increased over the last two decades.
• C) Expropriation and nationalization have led to technologically advanced and competitive businesses.
• D) Nowadays, companies have to become domesticated as a condition for investment.
• E) Nowadays, confiscation is viewed as a means of economic growth.

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Definitions:

Diminishing Marginal Utility

The principle stating that as a person consumes more of a good or service, the satisfaction gained from each additional unit decreases.

Utility Maximizer

An economic concept referring to consumers who select goods or services in a way that maximizes their total satisfaction or utility.

Utility From Milk

The satisfaction or benefit a consumer receives from consuming milk, assessing its nutritional value and taste preferences.

Optimal Consumption Rule

A guideline suggesting that to maximize utility, consumers should allocate their budget in a way that the last dollar spent on each good or service yields the same level of marginal utility.