ECONOMICS
ECONOMIC GROWTH
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Country A’s low investment in human capital lowers the GDP per capita.
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Country A has greater opportunity for other capital investments than education.
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Country A’s GDP per capita would decrease if there was more investment in human capital.
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Country A’s high investment in human capital lowers the GDP per capita
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Detailed explanation-1: -Higher literacy rates are associated with healthier populations, less crime, greater economic growth, and higher employment rates. For a person, literacy is a foundational skill required to acquire advanced skills. These, in turn, confer higher wages and more employment across labor markets .
Detailed explanation-2: -Countries with a high literacy rate usually have a high GDP per capita. Nations with low GDP frequently have lower literacy rates since the people in that country have less access to education, and children often have to work to help support the family.
Detailed explanation-3: -The literacy rate of a country affects its economic development greatly. The more literate citizens a country has, the greater is its economic development. People who are literate can more easily develop skills that will help them in the workplace and will help them find and keep jobs, so they can spend money.
Detailed explanation-4: -Latin America’s economy is composed of two main economic sectors: agriculture and mining. Latin America has large areas of land that are rich in minerals and other raw materials. Also, the tropical and temperate climates of Latin America makes it ideal for growing a variety of agricultural products.