People living in San Jose,CA on average earn more money than people living in St.Louis,MO.The citizens of San Jose enjoy a higher standard of living than the citizens of St.Louis.
The standard of living depends on the price level as well as the income people earn.For example,as our text indicates,people in Germany and Japan may earn more money than Americans,but they have a lower standard of living because the prices they pay for goods and services are higher.

Question

Quizplus · Accepted Answer

The standard of living is not solely determined by income; it also depends on the cost of living. Higher earnings in San Jose may be offset by higher living costs, potentially resulting in a lower or comparable standard of living to St. Louis.

People Living in San Jose,CA on Average Earn More Money