According to Some Recent Expert Surveys, the Experts Estimate That

question 18

Multiple Choice

According to some recent expert surveys, the experts estimate that North Korea has a winning coalition of 73 people! (This is down from several hundred a few decades ago.) This means that the W/S ratio is very, very small compared with almost any other country. Based on the selectorate theory, what kind of government performance should we expect to see in North Korea?

• A) We should expect a high level of public goods provision and a high rate of economic growth.
• B) We should expect a low-to-medium level of public goods provision and a medium rate of economic growth.
• C) We should expect a low level of public goods provision and a low rate of economic growth.

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Definitions:

Economic Value Added

A financial performance metric that calculates the value a company generates from its capital investments, beyond the cost of capital.

Weighted Average Cost Of Capital

The overall rate of return that a company is expected to pay on average to all its security holders to finance its assets.

Market Value Of Equity

The total dollar value of a company's shares of stock on the open market.

Employee Absenteeism

The habitual non-presence of an employee at work, which can affect productivity and operational efficiency.