Which statement best describe the relationship between productivity and standard of living?
A) International trade makes a country's productivity irrelevant.
B) A country's standard of living and its productivity are closely related.
C) Productivity only increases revenue to investors, while general well-being is not affected.
D) A rich country can enjoy a high standard of living without the need for high productivity.

Question

Quizplus · Accepted Answer

Productivity is a key determinant of a country's standard of living. Higher productivity leads to increased output and often results in higher wages and better working conditions for workers, which can improve the overall quality of life in a country. Additionally, higher productivity can result in more resources being available for investment in education, healthcare, and infrastructure, all of which can contribute to an improved standard of living.

Which Statement Best Describe the Relationship Between Productivity and Standard