Question

Explain how the following factors mattered directly and/or indirectly, if at all

for growth of per capita income, and the level of income per capita.

A. Free tuition laws, more applied high school curricula and a high private rate of return to education.

B.Large and dense areas of non-agricultural industrial economic activity

Answer 1

A.Free tuitions,more applies curriculum,and a high private rate of return would encourage more students to get educated.The parents could also afford education due to free tuitions.High private rate of return from education means more salary for the students in future.

All these factors would indirectly lead to higher growth of per capita income because more people would be educated.More education would lead to more productivity and more income which would increase the level of per capita income.

B.Large areas of non-agricultural industrial activity would require the need of more workers.Workers would be offered higher income due to high demand of labour.Income per capita would rise.Growth rate of income per capita would also rise due to higher productivity in this area.