Question

1. country i and country ii are both located in africa. the level of investment in capital goods is much higher in country i than it is in country ii. based solely on this information, how do the economies of these nations most likely compare to one another?

a. country i likely has a more skilled labor force than country ii.
b. country i is likely more technologically advanced than country ii.
c. country i is likely more reliant on trade with other countries than country ii.
d. country i likely has a more heavily regulated business sector than country ii.

1. use the graph to answer the question.

Explanation:

• Option A: Investment in capital goods doesn't directly imply a more skilled labor force. Skilled labor is about human - capital development (education, training), not just capital goods investment.
• Option B: Higher investment in capital goods often means a country is using more advanced machinery, equipment, etc. Capital goods like new - generation manufacturing plants or high - tech research equipment are indicators of technological advancement.
• Option C: There is no information in the problem about trade. Just because a country invests more in capital goods doesn't mean it is more reliant on trade.
• Option D: Heavy regulation of the business sector is not related to the level of investment in capital goods. Regulation is about laws, permits, etc., not about the amount of money spent on capital goods.

Answer:

B. Country I is likely more technologically advanced than Country II.