An economy's standard of living grows over the long run because of _____
A) better protection of domestic industries from foreign competition.
B) centralized planning and decision making.
C) technological improvements.
D) stringent foreign trade policies.
E) a high-growth rate of population.

Question

Quizplus · Accepted Answer

Technological improvements lead to increased productivity, which drives economic growth and higher standards of living. Protectionist policies, central planning, and high population growth rates do not necessarily lead to sustained long-term growth.

An Economy's Standard of Living Grows Over the Long Run