High School

Which statement regarding workers is true?

1) Workers in developing countries earn low wages due to limited investment in human capital.

2) Workers in developing countries earn high wages due to limited investment in human capital.

3) Workers in developing countries earn low wages due to excessive investment in human capital.

4) Workers in developing countries earn high wages due to excessive investment in human capital.

Answer :

Final answer:

Workers in developing countries often earn low wages primarily due to limited investment in human capital, which is essential for improving worker productivity and encouraging economic development.

Explanation:

The statement regarding workers that is true is: Workers in developing countries earn low wages due to limited investment in human capital.

Investment in human capital is crucial for economic development. It includes education, health, and vocational training that improve the productivity of workers. Developing countries often face challenges in investing adequately in human capital, leading to lower productivity and, consequently, low wages. This limitation is a significant barrier to economic development and contributes to the income gap between developing and developed countries.

The process of shifting labor from less productive sectors like agriculture to more productive ones such as manufacturing can spur income growth. However, for this transition to be successful, considerable investment in human capital is essential. Without such investment, workers remain in lower productivity jobs with low wages, impacting the overall economic growth of a country.