ECONOMICS
BARRIERS TO TRADE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Poverty increases literacy rates.
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Poverty decreases literacy rates.
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Low literacy rates increase poverty.
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High literacy rates eliminate poverty.
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Detailed explanation-1: -When a country invests in human capital it has the ability to foster more entrepreneurs, the more entrepreneurs a country has the higher the GDP.
Detailed explanation-2: -More money spent on human capital equals higher GDP. Countries who make a sizable investment in human capital tend to see a rise in GDP per capita incomes. GDP per capita measures the average annual income of citizens in a given nation. The GDP per Capita is the GDP divided by the number of people in a country.
Detailed explanation-3: -Countries that spend a larger percentage of their GDP investing in human capital and capital goods experience increases in literacy rate, standard of living, and GDP.
Detailed explanation-4: -A mixed economic system synthesizes the elements of a market economy and the elements of a command economy. In a mixed economic system, free markets co-exist with government intervention, and private enterprises co-exist with public enterprises.