What Is the Relationship Between Democracy and Development in South

question 10

Multiple Choice

What is the relationship between democracy and development in South and North America?

• A)Autocratic states are more capable of developing their economies,as they are able to ignore special interests.
• B)People were generally not interested in democratic representation in South America.
• C)Some equality in the economic system leads to more equal governance in the political system in North America,and this representation facilitated development-oriented institutions.
• D)The unequal development of wealth in South America encouraged the political institutions to represent the rich,which fostered faster economic growth than in North American societies.
• E)European colonial powers generally cared more about their colonies in North America than their South American colonies and worked to develop those colonies first.

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Definitions:

Utility Function

A mathematical representation that ranks an individual's preferences over a set of goods and services, aiming to measure satisfaction or happiness.

Consumption

Households' utilization of goods and services.

Interest Rate

The percentage at which interest is paid by a borrower for the use of money they borrow from a lender.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return.