A nation's standard of living depends on its population and labor productivity.

Question

Quizplus · Accepted Answer

A nation's standard of living is largely determined by its labor productivity, which is the amount of goods and services produced per hour of work. A higher productivity means more goods and services are available, improving the standard of living. Population can also impact the standard of living through its effect on the labor force and market size, but labor productivity is a key determinant.

A Nation's Standard of Living Depends on Its Population and Labor