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Why Is the Fear of Expropriation an Obstacle to Economic

Question 8

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) No foreign investment comes to the country, because of the lack of guarantees.
E) The fear of expropriation causes too many resources to be devoted to military spending which is a highly unproductive sector.

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