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.

Question

Quizplus · Accepted Answer

The fear of expropriation means that people are hesitant to invest in a country because they worry that their property or assets will be taken away without compensation. This creates a lack of foreign investment, which can stall economic growth. Without foreign investment, a country may struggle to develop new industries, improve infrastructure, or create new jobs. Therefore, the fear of expropriation is a major obstacle to economic growth.

Why Is the Fear of Expropriation an Obstacle to Economic