Look at the Results in Table 1 Below -Based on These Results, Does an Increase in Gross Domestic

question 6

Multiple Choice

Look at the results in Table 1 below.
Table 1: Culture and Democratic Survival
Dependent variable: Probability of Democratic Survival


$\begin{array}{lc}\hline \text { Independent variables } & \text { Model 1 } \\\hline & \\\text { Muslim majority } & -0.46(0.28) \\\text { Catholic majority } & -0.41^{*}(0.20) \\\text { GDP per capita } & 0.0001^{* *}(0.00003) \\\text { Growth in GDP per capita } & 0.02^{* * *}(0.01) \\\text { Oil producer } & 0.43(0.31) \\\text { Effective number of ethnic groups } & -0.09 * * *(0.05) \\\text { Constant } & 1.88^{*}(0.28) \\\text { Observations } & 1784 \\\text { Log-likelihood } & -161.41 \\\hline \text { Robust standard errors in parentheses. "greater than } 90 \% \text { significant; } \\{ }^{* *} \text { greater than } 95 \% \text { significant; }{ }^{* *} \text { greater than } 99 \% \text { significant. } \\\hline\end{array}$
-Based on these results, does an increase in gross domestic product per capita significantly increase, decrease, or have no effect on the likelihood that a democracy will remain a democracy?

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Definitions:

Intrinsic Value

An estimate of the true value of an asset, including tangibles and intangibles, based on an underlying perception of its true value including all aspects of the business, in terms of both tangible and intangible factors.

Beta Coefficient

An index of a security's fluctuation in value as compared to the broader market, signifying its relative risk versus the average market risk.

Characteristic Line

In finance, a line that describes the relationship between the returns on a stock and the returns on the market, used in the Capital Asset Pricing Model (CAPM).

Stable Equilibrium

A state in which a system, once disturbed, returns to its original condition because the equilibrium is stable.