CLEP Economics Exam Prep

Category - Economics

Country X and Country Y have similar populations and natural resources. Which of the following best explains why Country X would have a higher rate of economic growth than Country Y?
  1. Country X invests more in education.
  2. Country X imports more consumer goods.
  3. Country X places higher taxes on businesses.
  4. Country X pays larger salaries to government officials.
Explanation
Answer: A - Country X invests more in education.
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