Based on the Implications of the Exit, Voice, and Loyalty

question 15

Multiple Choice

Based on the implications of the Exit, Voice, and Loyalty game, what should we expect the relationship to be between oil wealth and the prospects for democratization?

• A) Oil wealth should be positively correlated with democratization.
• B) Oil wealth should be negatively correlated with democratization.
• C) There is no correlation between oil wealth and democratization.

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Definitions:

Fair Market Value

An estimate of the market price of a property or asset if sold under competitive and open market conditions.

Marketable Securities

Financial instruments that can be easily converted into cash at market value, often used for short-term investments.

Current Liabilities

Obligations or debts a company is expected to pay off within a year.

Operating Cycle

The time period it takes for a company to purchase inventory, sell products, and convert sales into cash.