Brazil Is a Large, Ethnically Heterogeneous, Primarily Catholic Country

question 6

Essay

Brazil is a large, ethnically heterogeneous, primarily Catholic country. It has a presidential system with proportional representation electoral laws. Based on this description and the hypothetical regression results below, what factors about Brazil encourage political extremism? What factors discourage political extremism? Which have no effect?
Table 1: Testing Theories of Political Extremism
Dependent Variable: Level of Political Extremism

$\begin{array}{lc}\text { Variables } & \text { Model 1 } \\\hline \text { Small population } & -0.29^{*} \\\text { Economic development } & 0.10 \\\text { Ethnic diversity } & 0.27^{*} \\\text { Large agriculture sector } & 0.62^{*} \\\text { Catholic majority } & 0.04 \\\text { Presidential regime } & -0.14^{*} \\\text { Single-member district plurality } & -0.53^{*} \\\hline\end{array}$

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Definitions:

Discount Rate

The interest rate used to discount future cash flows to their present value.

Stock Value

The current price at which a share of a company's stock can be bought or sold. It is determined by the market and can fluctuate based on demand and supply.

Present Value

The today's worth of future monetary sum or continuous cash flows, considering a defined interest rate.

Dividend Yield

Dividend yield is the ratio of a company’s annual dividends compared to its share price, indicating how much shareholders earn in dividends relative to the share price.