What causes almost all variation in living standards in different countries?
A)population growth rates
B)endowments of natural resources
C)national government budgets
D)productivity

Question

Quizplus · Accepted Answer

Productivity, or the amount of output produced per unit of input, is the primary driver of economic growth and living standards. Countries with higher levels of productivity can produce more goods and services with the same amount of resources, leading to higher incomes and standards of living for their citizens. Endowments of natural resources, while important, can be a double-edged sword as they may lead to the neglect of other productive sectors of the economy. Population growth rates and national government budgets can also impact living standards, but to a much lesser extent than productivity.

What Causes Almost All Variation in Living Standards in Different