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, we would expect that the growth rate in Turan will
A)fall temporarily, but will return to where it was when the new owners learn how to farm.
B)increase because the total amount of human capital in the country will increase as the new owners learn how to farm.
C)fall and remain lower for a long time.
D)not be affected unless widespread civil disorder or civil war results.

Question

Quizplus · Accepted Answer

The arbitrary seizure of farms and the transfer of these farms to individuals who lack farming expertise, combined with the disregard for legal rulings, is likely to disrupt agricultural productivity and economic stability, leading to a long-term decline in growth rate.

The Dictator of Turan Has Recently Begun to Arbitrarily Seize