How Does Productivity Explain the Differences in Standard of Living

question 7

Multiple Choice

How does productivity explain the differences in standard of living across countries?

• A) Productivity tends to be lower in countries with high population, and therefore in those countries standards of living are lower.
• B) Productivity explains very little of the differences across countries in the standard of living.
• C) Productivity explains some, but not most, of the differences across countries in the standard of living.
• D) Productivity explains most of the differences across countries in the standard of living.

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Definitions:

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Populations

Groups of individuals of the same species living and interacting within a specific area.

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An economist who utilizes mathematical models and statistical analysis to understand and predict economic behavior and trends.