When a government thinks about how a policy will affect living standards, the key question it must consider is:

Question

Quizplus · Accepted Answer

The government must consider how a policy will affect the ability to produce goods and services because this is the foundation of a country's economy and its citizens' living standards. Policies that increase productivity and efficiency can boost economic growth and increase living standards, while policies that decrease productivity can harm the economy and lead to a decline in living standards. The other options may also be important considerations, but they are not as central to evaluating the impact of a policy on living standards as the ability to produce goods and services.

When a Government Thinks About How a Policy Will Affect