Does the political freedom existing in democracies always aid ...

[futuristic]

Does the political freedom existing in democracies always aid economic growth?

Question 2

Given that resources can be allocated by the government, the market, a random process, or on a first-come first-serve basis, which of the following statements is true?
 a. The market system is not entirely fair but it creates incentives to increase supplies and improve standards of living.
  b. The random process of allocation allows individuals to acquire purchasing power and enhances the value of the resources that they own.
  c. Since the government system does not distinguish between those who have income and those that do not, government allocation of resources is the most efficient.
  d. There will be no shortages under the first-come first-serve basis of allocation.
  e. A random process of allocation is fair in the sense that everyone gains and there are no losers.

[Carliemb17]

Answer to Question 1

It is claimed that economic growth stimulates political freedom or democracy, but evidence for that correlation is far from conclusive. Some features of democracy, such as majority voting and special interest groups, may also be growth retarding. For instance, if the majority decides to vote for large land reform measures and wealth transfers, the consequences will be higher taxes and market distortions, which will reduce incentives for work, investment and ultimately economic growth.

Answer to Question 2

a