📚 Learning Guide
Skilled Labor and Economic Growth
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Country A has invested heavily in education and vocational training, leading to a more skilled workforce. In contrast, Country B has maintained a lower level of investment in education. Given this scenario, which of the following statements best explains the likely economic outcomes for both countries?

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Choose the Best Answer

A

Country A will likely experience higher economic growth due to increased productivity from its skilled labor force.

B

Country B will catch up to Country A in economic growth because its unskilled labor can be hired at lower wages.

C

Both countries will grow at similar rates because the total number of workers is the same.

D

Country A's growth will eventually decline due to over-education of its workforce.

Understanding the Answer

Let's break down why this is correct

Answer

Country A, which has invested heavily in education and vocational training, is likely to experience stronger economic growth because a more skilled workforce can lead to higher productivity and innovation. When workers have better skills, they can perform their jobs more efficiently and contribute to creating new ideas and technologies. For example, if Country A has a lot of trained engineers, they can develop advanced products that boost the economy. In contrast, Country B, with its lower investment in education, may struggle to keep up because its workforce might not have the necessary skills to compete in a rapidly changing job market. This difference in investment can create a widening gap between the two countries in terms of economic development and living standards.

Detailed Explanation

Country A will likely grow faster. Other options are incorrect because Some might think that cheaper workers can help a country grow; It's a common belief that the number of workers matters most.

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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