Questions: Growth: Mastery Test Drag the tiles to the correct boxes to complete the pairs. Match each effect to its cause investing in physical capital engaging in international trade investing in human capital increase in literacy rate increase in foreign demand for goods increase in production speed and quality

To match each effect to its cause, we need to understand the relationships between the actions (causes) and their outcomes (effects). Here are the correct pairs:

1. Investing in physical capital - Increase in production speed and quality

   • Explanation: Physical capital includes machinery, tools, and equipment that can enhance the efficiency and quality of production processes.

2. Engaging in international trade - Increase in foreign demand for goods

   • Explanation: International trade opens up markets for goods and services, leading to an increase in demand from foreign consumers.

3. Investing in human capital - Increase in literacy rate

   • Explanation: Human capital investment often involves education and training, which directly contributes to higher literacy rates.

So, the correct pairs are:

• Investing in physical capital -> Increase in production speed and quality
• Engaging in international trade -> Increase in foreign demand for goods
• Investing in human capital -> Increase in literacy rate