The Standard of Living Depends on a Country’s Production

description

• Standard of living measured by:
  • Comparing personal incomes
  • Comparing the total market value of a nation’s production (OECD)
    • Organization for Economic Cooperation and Development
    • a unique forum where the governments of 37 democracies with market-based economies collaborate to develop policy standards to promote sustainable economic growth
• Almost all variations in living standards are explained by differences in countries’ productivities
  • Productivity: amount of goods and services produced from each hour of a worker’s time
• Productivity is the ultimate source of living standards