A statistical study has yielded the result that a certain section of the society remains poor because the children of school going age are doing manual labour. Hence, when they become adults of this community they would not have the sufficient knowledge and skills to get high paying jobs. As an economist, what policy would you recommend for this situation?

Create better-paying jobs for the people in that community

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Make resources available to them at subsidized prices

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Invest in robots to do more manual labour

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Make free and compulsory education available to the children in the community

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Solution

The correct option is D Make free and compulsory education available to the children in the community
Since the root cause of the problem is a lack of education, making schooling compulsory for students would be the best policy to adopt. Creating new jobs without having skilled persons to fill in will be inconsequential.

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