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Comparing 1950-2000 economic growth rates of democracies and dictatorships, the chapter finds that:
ADemocracies grew faster than authoritarian regimes by a wide margin
BDictatorships had a slightly higher growth rate but at huge other costs
CDemocracies and dictatorships grew at exactly the same average rates
DAuthoritarian regimes always experienced negative growth rates
Answer & Solution
Correct answer: B. Dictatorships had a slightly higher growth rate but at huge other costs
Dictatorships had a marginally higher growth rate (4.34% vs 3.95%) during 1950-2000. But the chapter notes the difference is small and dictatorships pay huge other costs: famines, arbitrary policies, lack of individual rights.
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