What causes almost all variation in living standards in different countries?
A) population growth rates
B) endowments of natural resources
C) proximity to foreign markets
D) productivity

Question

Quizplus · Accepted Answer

Productivity is the main factor that causes variation in living standards in different countries. The higher the productivity, the higher the income and living standards. Natural resources, population growth rates, and proximity to foreign markets can also play a role, but productivity is the most important driver of economic development and growth in a country.

What Causes Almost All Variation in Living Standards in Different