If North Korea and South Korea Were Both Equally Poor

question 78

Multiple Choice

If North Korea and South Korea were both equally poor in 1950, why has South Korea developed so much faster since then?

• A) The two countries have different language, cultural, and historical backgrounds.
• B) North Korea has an economic system that develops incentives.
• C) South Korea has maintained a more market-based economic system.
• D) South Korea began with a higher per capita GDP.

---

Definitions:

U.S. Judicial Conference

The U.S. Judicial Conference is the policymaking body for the federal court system, tasked with ensuring the efficient administration of justice within the federal judiciary.

Inflation

The rate at which the general level of prices for goods and services is rising, eroding purchasing power.

Automatic Stay

A legal provision that halts all lawsuits, foreclosures, and collection activities against a debtor the moment a bankruptcy petition is filed.

Creditor

An individual or institution that lends money or extends credit to another party, known as the debtor.