O Levels Economics (2281)•2281/12/M/J/24

Explanation
Education fuels faster economic growth
Steps:
- Identify that economic development measures growth in GDP, productivity, and living standards over time.
- Recall that human capital—skills and knowledge from education—boosts innovation and efficiency, accelerating development.
- Compare options: Higher education spending in X likely builds better workforce, explaining faster progress.
- Eliminate distractors: Unemployment, reverse investment, and healthcare don't directly drive development rates.
Why A is correct:
- Education spending enhances human capital, a key factor in endogenous growth theory, where knowledge accumulation increases long-term GDP growth.
Why the others are wrong:
- B: Higher unemployment in X reduces productivity and growth, contradicting faster development.
- C: Higher investment in Y should promote Y's growth more, not X's advantage.
- D: Healthcare improves health but doesn't directly spur economic development like education does.
Final answer: A
Topic: Differences in economic development between countries
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