German Economic Miracle Quiz

What were the two main factors that caused the so-called German economic miracle after World War II?

• Increase in food production and industrial output

• Currency reform and elimination of price controls

• Reduction of marginal tax rates and increase in housing

• Import of foreign goods and services

What was the role of a "compensator" in post-war Germany?

• A person who compensated for war damages

• A specialist who bartered his firm's output for needed inputs

• A government official who controlled prices

• A farmer who grew food for the urban population

What did the Allied Control Authority agree to keep in place in November 1945?

• Food rationing

• Price controls

• Currency reform

• Tax reductions

What was the cost-of-living index in May 1948 compared to its 1938 level?

• 50 percent above its level in 1938

• 31 percent above its level in 1938

• 25 percent above its level in 1938

• 40 percent above its level in 1938

What did people barter for food in post-war Germany?

• Money and gold

• Personal effects, old clothes, sticks of furniture

• Government bonds

• Foreign currency

Who wrote that barter and self-sufficiency were incompatible with an extensive division of labor?

• Ludwig Erhard

• Wilhelm Roepke

• Walter Eucken

• Dr. Kreyssig

What was the name of the school of economic thought based at Germany's University of Freiburg?

• Chicago School

• Austrian School

• Keynesian School

• Soziate Marktwirtschaft

Who agreed with Wilhelm Roepke's ideas on currency reform?

• Walter Eucken

• Dr. Kreyssig

• Ludwig Erhard

• Milton Friedman

What did the Social Democratic Party (SPD) want to keep after the war?

• Free markets

• Government control

• Currency reform

• Price controls

Who was appointed Bavarian minister of finance in 1945?

• Wilhelm Roepke

• Walter Eucken

• Dr. Kreyssig

• Ludwig Erhard