_____ is an important determinant of its standard of living in the long run.
A)A nation's net exports
B)The productivity of a nation's resources
C)A nation's population growth rate
D)The deficit in a nation's capital account
E)The deficit in a nation's current account

Question

Quizplus · Accepted Answer

The productivity of a nation's resources, including its labor force, natural resources, technology, and capital, is a key determinant of its standard of living in the long run. Higher productivity means that more goods and services can be produced with the same amount of resources, leading to higher output, incomes, and living standards. Factors such as net exports, population growth, and deficits in the capital or current account can have a short-term impact on a nation's economic performance, but they are not as crucial for sustained economic growth and development as productivity.

_____ Is an Important Determinant of Its Standard of Living