The Democracy-Dictatorship (DD) Measure of Democracy Classifies a Country as a Democracy

question 8

Multiple Choice

The Democracy-Dictatorship (DD) measure of democracy classifies a country as a democracy if (a) the chief executive is elected, (b) the legislature is elected, (c) more than one party competes, and (d) there has been an alternation in power. The Freedom House measure classifies a country's level of "freedom" based on many criteria, including whether the government is accountable, the level of corruption, if minorities are autonomous, if people are treated equally under the law, if they have equality of opportunity, and so on. Say you had the following hypothesis: Governments are less corrupt in democracies than in non-democracies.
-If you want your hypothesis to be falsifiable, which measure of democracy should you use?

• A) you should use DD
• B) you should use Freedom House
• C) you could use either measure and the hypothesis would be falsifiable
• D) you should not use either measure

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Definitions:

Economic Profits

The surplus achieved when the revenue from business activities exceeds both the explicit and implicit costs, differing from accounting profits by considering opportunity costs.

Accounting Profits

The total revenue of a company minus total explicit costs; the profit figure reported in financial statements.

Marginal Revenue

The additional income received from the sale of one more unit of a product or service.

Competitive Market

A market environment where numerous sellers and buyers exist, ensuring no single entity can dictate the price of a product or service.