Which of the following does not contribute to an economy's standard of living in the long run?
A) increases in the amount and quality of resources, especially labor and capital
B) better technology and know-how
C) improvements in the rules of the game that facilitate production and exchange
D) a reliable and respected system of property rights, customs, and conventions that nurture productive activity
E) a reduction in productivity

Question

Quizplus · Accepted Answer

A reduction in productivity decreases the output and income of an economy, leading to a lower standard of living. Therefore, it does not contribute to the economy's standard of living in the long run. The other options, such as increases in resources, better technology, and improved rules and conventions for exchange and production, are all factors that can enhance an economy's long-term standard of living.

Which of the Following Does Not Contribute to an Economy's