Answer the following statement(s) true (T) or false (F)

1. Modernization theory predicts that the likelihood of a transition to democracy increases with income, whereas the survival story predicts that the likelihood of becoming a democracy is unrelated to income.
2. Modernization theory predicts that the likelihood of a transition to democracy decreases with income, whereas the survival story predicts that transitions to dictatorship become more likely with income.
3. Foreign aid will have a detrimental effect on the recipient country’s economic development no matter what the size of the dictator’s winning coalition is:
4. States with high oil revenues tend to keep dictators in power because since dictators control national oil companies, they can effectively hide the country’s finances from the people.
5. According to the implications of the Exit, Voice, and Loyalty game in Chapter 6, we should expect that countries in which the state controls high levels of natural resources are more likely to be democratic than countries in which the state does not control high levels of natural resources.

1. True
2. False
3. False
4. True
5. False