What is the most important factor that explains differences in living standards among countries?
A)labor unions
B)minimum wage laws
C)productivity
D)efficiency

Question

Quizplus · Accepted Answer

Productivity refers to the amount of output produced per unit of input used, such as labor or capital. Higher productivity leads to higher output, which in turn leads to higher living standards. Therefore, productivity is the most important factor that explains differences in living standards among countries. Labor unions and minimum wage laws may affect the distribution of income within a country but do not necessarily lead to higher overall living standards. Efficiency is related to productivity but does not capture the full picture of differences in living standards.

What Is the Most Important Factor That Explains Differences in Living