Rising incomes don't necessarily mean a higher standard of living. What are increased standards of living are a function of?

Question

Quizplus · Accepted Answer

Increased standards of living are a function of purchasing power, which refers to the amount of goods and services that can be purchased with a given amount of money. Simply having higher incomes does not necessarily mean that people can afford a better quality of life if prices for necessary goods and services rise at the same rate or faster than incomes.

Rising Incomes Don't Necessarily Mean a Higher Standard of Living