We Are Analyzing the Effects of Regime Type on Corruption

question 12

Multiple Choice

We are analyzing the effects of regime type on corruption rates with the following model: Corruption = 10 - 0.1 GDP (per capita) - 2.0 Democracy
Where Corruption is an index of corruption, GDP (per capita) is measured in thousands of dollars, and Democracy is a dummy variable that is equal to one if a country is a democracy and 0 otherwise. What is the expected rate of corruption of a democratic country with a per capita GDP of $50,000?

• A) Not enough information to come up with an answer
• B) 8.5
• C) 13.0
• D) - 4992

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