Question

Why does an increase in literacy rates often accompany an increase in per capita income?

People who have higher-paying jobs often have the time available to develop literacy skills.
Developing countries have higher-than-average literacy rates, which typically leads to higher income.
People who can read and who receive an education are eligible for higher-paying jobs.
Developed countries often attempt to raise low literacy rates to improve income.

Answer 1

Correct answer: "People who can read and who receive an education are eligible for higher-paying jobs."

Explanation: Higher literacy raises human capital and productivity, giving people access to better-paying, more skilled employment and enabling economic growth — which raises per capita income.

Notes on the other choices:
- The first choice (higher-paying jobs give time to develop literacy) can be true in some cases, but it describes the reverse causation and is not the primary reason literacy and income rise together.
- The second choice is false: developing countries generally have lower, not higher, literacy rates.
- The fourth choice is misleading: developed countries already have relatively high literacy; while policies to raise literacy can boost income, the phrasing is incorrect as stated.