How can a nation achieve a high standard of living?

To achieve a high standard of living, a nation should: A. increase the tax deduction for child dependents. B. promote economic growth. C. use less capital and more labor in the production process. D. increase welfare payments to the poor. 4. In the long run, the most important source of increase in a nation's standard of living is a:

What is a standard of living?

When economists talk about the standard of living, they are referring to the average quantity (and quality) of goods and services that people in a country can afford to consume.

How do you measure living standards in a country?

One way to measure the improvement in the living standards of a country is by looking at the growth rate of its gross domestic product (GDP) per capita. 1 This measure can be decomposed into: