Almost all variation in living standards in different countries:
A) Is attributable to variations in productivity.
B) Is attributable to differences in countries' endowments of natural resources.
C) Is attributable to differences in climate.
D) Is attributable to variation in population sizes.

Question

Quizplus · Accepted Answer

Productivity is the main determinant of living standards in different countries. Countries with higher productivity will have higher incomes and a higher standard of living for their citizens compared to countries with lower productivity. Natural resources, climate, and population size can all have some impact on living standards, but their influence is relatively small compared to productivity.

Almost All Variation in Living Standards in Different Countries