Question

Some economists and political scientists have suggested that when communities are more racially or ethnically diverse, they invest less in education and spend more on private goods. Assuming this theory is true, there would be___________.

A. more economic growth because spending on private goods generates higher wages.
B. less economic growth because investment in education cost more than spending on private goods.
C. more economic growth because spending on private goods generates more employment.
D. less economic growth because investment in education has a greater future return than investment in private goods.

Answer 1

Answer:

The correct answer is letter "D": less economic growth because investment in education has a greater future return than investment in private goods.

Explanation:

Even if countries require private investment to improve the flow of the economy, education is the key factor that could turn those economies from developing to developed countries. In the long run, improvement in manufacturing processes, technology, governmental policies, and culture can take place only if education is implemented correctly in those regions.