Reference: Ref 8-1 (Table: GDP Growth) The table shows growth rates for Germany, Japan, and the United States in both the post-WWII period from 1950-1960 and then again from 1980-1990. Which of the following explains why Germany and Japan experienced such high growth rates just after the Second World War?
A) Trade agreements between Germany and Japan greatly enhanced economic growth.
B) High MPK levels contributed to significant per capita output growth.
C) Their technological advances at this time were higher than those of the United States.
D) All of the answers are correct.

Question

Reference: Ref 8-1 (Table: GDP Growth) The table shows growth rates for Germany, Japan, and the United States in both the post-WWII period from 1950-1960 and then again from 1980-1990. Which of the following explains why Germany and Japan experienced such high growth rates just after the Second World War?
A) Trade agreements between Germany and Japan greatly enhanced economic growth. 
B) High MPK levels contributed to significant per capita output growth. 
C) Their technological advances at this time were higher than those of the United States. 
D) All of the answers are correct.

Quizplus · Accepted Answer

High MPK (Marginal Product of Capital) levels contributed to significant per capita output growth in Germany and Japan after WWII. Both countries had to rebuild their infrastructure and industries, resulting in increased investment and a higher MPK. This, in turn, led to higher economic growth rates. Trade agreements and technological advances may have also contributed, but they were not the primary drivers of growth. Therefore, options A, C, and D are incorrect.

Reference: Ref 8-1 (Table: GDP Growth) the Table Shows Growth