Question

True or False: Of the major economies in the world, the United States had the highest growth rate of real GDP per capita between 1982 and 2009.

・True

・False

Japan experienced average annual real GDP per capita growth of 2.0% between 1982 and 2009. Which of the following helped most to contribute to that growth?

・Redistributive policies designed to decrease poverty

・Privatization of previously nationalized industries

・Spending on research and development

Answer 1

1. True. It is correct that the growth rate of the United States has been very high during the period mentioned. In fact, till 2001 the economic growth was tremendous in the country with many years of economic expansion.

2. One of the prime reasons contributing to growth was the use of new technologies in industrial sector along with good work ethics.It is not option 1 because the redistribute policies were largely aimed at helping the senior citizens. Hence, they did not lead to capital accumulation and could not have contributed to growth.The answer is not option 2. Though privatisation helped a great deal in the process of growth they did not completely deregulate all the nationalised industries. Industries were held by both private and public sector. Japanese growth was led by investments rather than reports. The answer is option 3. Japanese economy started investing huge amounts of money for research and development. During 1987 it was seen that they were spending the most on research and development when compared to all other nations in the world.