Why Is the Fear of Expropriation an Obstacle to Economic

question 57

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)Because of the lack of guarantees, no foreign investment comes to the country.
• E)Because of this fear, too many resources are devoted to military spending which is a highly unproductive sector.

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Definitions:

Ending Inventory

is the total value of goods available for sale at the end of an accounting period after accounting for all additions and subtractions during the period.

Operating Expenses

Expenses incurred during the normal functioning of a business, excluding the cost of goods sold; these can include salaries, rent, utilities, and marketing expenses.

Closing Entries

journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts, thereby preparing the accounts for the next period.

Capital Account

A financial statement that shows the changes in a company's equity throughout an accounting period, including contributions from and distributions to owners.