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19 April, 15:15

What is the most important factor that explains differences in living standards across countries?

Answers (2)
  1. 19 April, 16:31
    An increase in overall levels of prices in the economy


    Increment of the whole prices in goods, services and commodities will affect a nation and it will show which country is capable of withholding such standard of living.
  2. 19 April, 16:50
    The correct answer is letter "C": productivity.


    Productivity describes the output relationship compared to the inputs required to produce those outputs. It is an efficiency indicator. The total production of a country for a given period is calculated by computing its Gross Domestic Product (GDP).

    When GDP is divided by the total population of a country, it is called GDP per capita, reflecting average individual expenditure. This metric makes it possible to have an idea of what those people's lifestyles are.
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