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Skilled Labor and Economic Growth
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How does a more skilled labor force impact a country's economic growth compared to a less skilled labor force?

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Choose the Best Answer

A

It leads to higher productivity and efficiency, increasing GDP.

B

It results in higher unemployment rates due to overqualification.

C

It has no effect on economic growth as all workers contribute equally.

D

It primarily benefits only high-tech industries, leaving others unaffected.

Understanding the Answer

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Answer

A more skilled labor force can greatly enhance a country's economic growth because skilled workers are often more productive and efficient. They can perform complex tasks, innovate, and adapt to new technologies, which leads to better products and services. For example, a factory with highly skilled engineers can design machines that work faster and use less energy, reducing costs and increasing profits. In contrast, a less skilled labor force may struggle with these tasks, resulting in lower productivity and slower economic progress. Overall, having a skilled workforce helps drive advancements and boosts a country's economy.

Detailed Explanation

A skilled labor force can do tasks faster and better. Other options are incorrect because Some might think that having too many skilled workers causes unemployment; It's a common belief that all workers help the economy equally.

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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