In the long run, a country will experience an increasing standard of living only if it experiences:
A)a high rate of consumption.
B)continuous technological change.
C)a high rate of labour force growth.
D)a slow rate of population growth.

Question

Quizplus · Accepted Answer

Continuous technological change leads to increases in productivity, which ultimately results in higher standards of living. A high rate of consumption, while increasing economic activity in the short term, can lead to unsustainable levels of resource depletion and externalities such as pollution. A high rate of labour force growth can lead to a larger workforce, but without corresponding increases in productivity, it can lead to lower wages and lower standards of living. A slow rate of population growth can provide a favorable demographic dividend, but it is not sufficient on its own to guarantee an increasing standard of living.

In the Long Run, a Country Will Experience an Increasing