A HEADLINE article in the text asks parents,"Do you expect your children's generation to enjoy a higher standard of living than your generation?" What is necessary for the standard of living to rise?
A) Economic growth.
B) A greater allocation of resources to consumption.
C) An inward shift in the production possibilities curve.
D) A less equitable distribution of income.

Question

Quizplus · Accepted Answer

Economic growth is necessary for the standard of living to rise. It allows for an increase in production and consumption of goods and services, higher employment rates and wages, and overall improvements in living standards. Option B is not necessarily true because a greater allocation of resources to consumption could have negative effects on savings and investment, limiting future economic growth. Option C is incorrect as an inward shift in the production possibilities curve would mean a decrease in the production capacity of an economy, leading to a lower standard of living. Option D is also incorrect as a less equitable distribution of income would result in a widening income gap, with the majority of the population experiencing a decrease in living standards.

A HEADLINE Article in the Text Asks Parents,"Do You Expect