If the government seizes Lucy's property and resells it to Ethel,
A) Lucy and Ethel collectively capture the resulting gains.
B) Lucy captures the resulting gains.
C) Ethel captures the resulting gains.
D) Neither Lucy nor Ethel capture any resulting gains.

Question

Quizplus · Accepted Answer

Ethel captures the resulting gains because she acquires the property, potentially at a value that could increase over time or provide her with utility or income, whereas Lucy loses her property rights without compensation in this scenario.

If the Government Seizes Lucy's Property and Resells It to Ethel