In the long run, a country's material standard of living is determined by:
A) the difference between its exports and imports.
B) the average level of prices and the average income of its population.
C) its output relative to its population.
D) the amount of money supply relative to its population.

Question

Quizplus · Accepted Answer

A country's material standard of living is determined by its output relative to its population. This is because a higher output means there are more goods and services available for the population to consume, which increases their standard of living. The other options, such as exports and imports, prices and income, and money supply, can all affect a country's economy in various ways but they do not directly determine the material standard of living.

In the Long Run, a Country's Material Standard of Living