Question

Since the end of World War II:

A both North and South Korea have adopted command economies.

B North Korea's economy has achieved greater economic growth than South Korea.

C the economies of both North Korea and South Korea have grown at approximately the same rate.

D the South Korean economy has grown faster than North Korea's economy.

Answer 1

D. the South Korean economy has grown faster than North Korea's economy.

At the end of World War II, Korean economy got divided into two - North Korea being occupied by Soviet Union and South Korea being occupied by United States, with the 38th parallel being the boundary.

Though both North Korea and South Korea were once united, after World War II, there exists a great difference in terms of their economies. North Korea is a command economy while South Korea is a mixed economy. This is also reflected in their growth and development. That is, North Korea has more focus on nuclear ambition over economic development.

While becoming a part of Organisation for Economic Co-operation and Development, South Korea emerged as a rich industrial economy. And today, it is the 11th largest economy in terms of GDP.

As per the latest data, North Korea's GDP stands at $40 billion while that of South Korea is $1.92 trillion. North Korea has a huge trade deficit while exports play an important role in South Korea's economic growth.