A low literacy rate usually indicates that a country lacks
A.
capital goods.
B.
a strong agricultural sector.
C.
human capital.
D.
a strong industrial sector.
C. human capital.
C. human capital.
In order to determine the correct answer, we need to understand what a low literacy rate indicates and what it can imply about a country.
To begin with, literacy rate refers to the percentage of people in a country who can read and write. A low literacy rate usually indicates that a significant portion of the population lacks basic reading and writing skills.
Now, let's analyze the options:
A. Capital goods: Capital goods are the machinery, equipment, and tools used in production. While they are essential for economic development, a low literacy rate is not directly related to the presence or absence of capital goods. Therefore, we can eliminate this option.
B. A strong agricultural sector: An agricultural sector refers to the portion of the economy involved in producing crops and raising livestock. While literacy skills can be valuable in agricultural activities, a low literacy rate alone does not necessarily indicate a lack of a strong agricultural sector. Thus, we can eliminate this option as well.
C. Human capital: Human capital refers to the knowledge, skills, and abilities of individuals that contribute to economic productivity. A low literacy rate directly affects a country's human capital since it implies a lack of essential reading and writing skills. Therefore, this option is a strong contender.
D. A strong industrial sector: An industrial sector refers to the part of the economy involved in manufacturing and producing goods. While literacy skills are important in industrial sectors, a low literacy rate does not explicitly indicate a lack of a strong industrial sector. As a result, we can eliminate this option.
Given the analysis, the most appropriate answer is C. A low literacy rate usually indicates that a country lacks human capital.