What explains the differences in standards of living across countries?

Question

Quizplus · Accepted Answer

Differences in standards of living across countries can be explained by different barriers to technology adoption. Countries that have better access to new technologies tend to have higher standards of living because they can produce goods and services more efficiently.

Answer: E
 Barriers to foreign capital flows can also explain differences in standards of living across countries. Countries that have more restrictions on foreign investment may not be able to attract as much capital, which can limit their economic growth and development.

Note: A, B, and C are not comprehensive enough to fully explain the differences in standards of living across countries. While employment levels and climate can impact an economy, they are not the only factors at play. Free trade agreements can benefit certain countries but are not a guarantee of a higher standard of living.

What Explains the Differences in Standards of Living Across Countries