How Are Democracy and Wealth Related

question 153

Multiple Choice

How are democracy and wealth related?

• A) Once people's basic needs have been met, there is an increased demand for democracy and political participation.
• B) Democracy is associated with institutions (free press, private property rights, lower levels of corruption) that are favorable towards growth and wealth accumulation.
• C) Neither of these explanations is correct.
• D) Both of these explanations are correct.

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Definitions:

Dividend Growth

The rate at which a company's dividend payouts increase over time, often seen as an indicator of the company's financial health and stability.

Constant Dividend

A cash payout policy where a company pays a fixed amount of dividend to its shareholders over time.

Rate of Return

The increase or decrease in the value of an investment during a set timeframe, shown as a percent of the investment's starting value.

Annual Dividend

The total amount of dividends that a company pays to its shareholders over a year, per share.