📚 Learning Guide
Skilled Labor and Economic Growth
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Country A has experienced a significant increase in its GDP per capita over the last decade. Which of the following is the most likely underlying cause of this economic growth?

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Choose the Best Answer

A

A substantial investment in education and training for the workforce

B

An increase in the population without corresponding skill development

C

A rise in natural resources leading to more jobs

D

Government policies that restrict labor mobility between sectors

Understanding the Answer

Let's break down why this is correct

Answer

The significant increase in Country A's GDP per capita likely comes from having more skilled workers in the economy. When a country invests in education and training, its workers become more knowledgeable and efficient. This skilled labor can create better products and services, which helps businesses grow and earn more money. For example, if Country A has more engineers and scientists, they can develop new technologies that increase productivity. As a result, the economy expands, and people earn higher incomes, leading to a rise in GDP per capita.

Detailed Explanation

Investing in education and training helps workers gain skills. Other options are incorrect because Simply having more people does not help if they lack skills; Having more natural resources can create jobs, but it doesn't guarantee skill development.

Key Concepts

Skilled Labor
Economic Growth
Human Capital
Topic

Skilled Labor and Economic Growth

Difficulty

medium level question

Cognitive Level

understand

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