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

Question

Giovanna Crane

Geography

6 October, 16:32

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

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Answers (2)

Know the Answer?

Regan Johns · Answer 1

An increase in overall levels of prices in the economy

Explanation:

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.

Kaliyah Lin · Answer 2

The correct answer is letter "C": productivity.

Explanation:

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.