In the long run, the most important source of increase in a nation's standard of living is a:
A)zero rate of population growth.
B)high rate of economic growth.
C)high rate of consumption.
D)high rate of labor force growth.

Question

In the long run, the most important source of increase in a nation's standard of living is a:
A)​zero rate of population growth.
B)​high rate of economic growth.
C)​high rate of consumption.
D)​high rate of labor force growth.

Quizplus · Accepted Answer

Economic growth refers to the increase in production and income in an economy over time. It leads to higher levels of output, productivity, and competitiveness, which ultimately contribute to a higher standard of living. A zero rate of population growth may reduce the strain on resources in the short-term, but it does not necessarily lead to economic growth or higher living standards. Similarly, consumption and labor force growth may contribute to economic activity, but without actual increases in production and output, they are not sustainable sources of long-term growth.

In the Long Run, the Most Important Source of Increase