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As a country's literacy rate and human capital capacity increase, the relative number of:

a. Labor-intensive production processes increases.
b. Capital-intensive production processes increases.
c. Sector service jobs decreases.
d. None of the choices are correct.

2 Answers

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Answer: b. Capital-intensive production processes increases.

Explanation: As a country's literacy rate and human capital capacity increase, the relative number of capital-intensive production processes increases too. This is because, all things being equal, as the labor force accrues more human capital, they are supplied with more physical capital. The level of economic growth determines the amount of skilled labor needed, that leads to improved employment in various industries and higher GDP growth throughout the economy.

User Orlando Osorio
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Answer:

B. Capital-intensive production processes increases.

User Ben Chamberlin
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