Which is the BEST explanation for why standard of living only increases through productivity?
A) The more goods that are available, the lower prices will be.
B) More goods are available without having to come by additional resources.
C) Productivity increases the money supply in an economy.
D) Purchasing power increases when there is more consumer choice.
E) Prices are determined by the standard of living.

Question

Quizplus · Accepted Answer

Increases in productivity mean that more goods can be produced with the same amount of resources, reducing the cost of production and making goods more affordable. This, in turn, increases the standard of living by making more goods available to consumers without requiring additional resources.

Which Is the BEST Explanation for Why Standard of Living