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If North Korea and South Korea Were Both Equally Poor

Question 130

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.

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