The Law of Eminent Domain Allows a Local Government to Take

question 17

Multiple Choice

The law of eminent domain allows a local government to take a person's property for public use,such as building a freeway that has been designed to cross land owned by this landowner.The landowner,by law,is entitled to be paid the fair market value of her land.However,in a recent action,a local government took a landowner's property under eminent domain and paid that landowner less than fair market value.Under utilitarianism,this government's action:

• A) Definitely was suboptimal
• B) Definitely was optimal because the government saved money for the benefit of society
• C) Definitely was optimal because any act that shifts resources away from a private individual to broader society satisfies the precepts of utilitarianism
• D) May have been optimal or suboptimal, but further inquiry into relevant facts is needed

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Definitions:

Intermediate Future

A period that lies between the near future and the distant future, often used in the context of forecasting or planning over a few years to a decade.

Perishable Inventory

Items or goods that have a limited lifespan or shelf life, requiring careful inventory management to minimize losses due to spoilage or obsolescence.

Yield Management

A pricing strategy that uses understanding of consumer behavior and market demand to maximize revenue, often used in the airline and hotel industries.

Variable Costs

Expenses that change in proportion to the level of production or sales activity, such as materials and direct labor.