Factors Affecting Living Standards

Question 1

What is the great economist Adam Smith theory on countries varying standards

Answer 1

the more wealthy countries are the higher the living standards SO…
countries that give their citizens freedoms to work can benefit from their labour and are more likely to be wealthy. This motivates citizens to make a profit adding to the economy prosperity.

Question 2

What are the four key Factors Affecting Living STandards

Answer 2

natural resources, stability of gov, labour productivity, labour resources

Question 3

What are natural resources and how do they affect living standards (example aswell)

Answer 3

the amount of natural resources a country has affects wealth and living standards. For example Aus has large quantities of natural resources like minerals so it can have a surplus and export internationally to earn money and improve living standards

Question 4

What is gov stability and how does that affect living standards (example aswell)

Answer 4

the stability of government affects living standards because countries in war put all of their money into army and not on producing g+s for the population therefore no food and required things
For example Syria

Question 5

What is labour productivity and how does it affect living standards (example aswell)

Answer 5

Labour productivty is the ammount of G+s workers make in a period of time. The more G+S produced the better. For examples, Productivity is increased by machines (quicker) and education (better skills)

Question 6

What are labour resources and how do they affect living standards

Answer 6

the proportion of people employed rather than unemployed. More jobs = more money for population to spend in economy, more income tax so gov can invest in better roads/water/ infrastructure

Question 7

List the 5 factors influencing major consumer + financial descisions

Answer 7

Price, Availability of Credit, Marketing, Age/Gender, Convenience, Ethical/enviro consideration

Question 8

Explain price in relation to major consumer + financial descisions

Answer 8

consumer don’t want products that are too cheap because it could be poor quality but they don’t want it to be too expensive. Although sometimes thing sare bought for prestige.

Question 9

Explain availability of credit in relation to major consumer + financial decisions

Answer 9

credit - an agreement to borrow and repay later (usually w/ interest): very easy to borrow money
credit cards are easy to get so it makes it easier to overspend and get into debt

Question 10

Explain marketing in relation to major consumer + financial decisions

Answer 10

marketing can influence consumers descision making on products. Uses specific target markets to persuade, inform, convince people about a product to buy it

Question 11

Explain age/gender of consumer in relation to major consumer + financial decisions

Answer 11

different ages/genders have dif needs/wants

Question 12

Explain conveniance in relation to major consumer + financial decisions

Answer 12

things that save time give advantage to those marketing it (fast food, ready made meals)

Question 13

Explain ethical considerations in relation to major consumer + financial decisions

Answer 13

many consumers want products that follow their beliefs and ethics. follows animals/human rights

Question 14

What are living standards

Answer 14

what it is like to live in a country in terms of non material and material wellbeing of citizens

Question 15

What are material living standards

Answer 15

our access to physical goods and services for example car, house, food
Measured by quantity of g+s available each gear (GDP)

Question 16

WHat are non material living standards

Answer 16

non tangible things that increase living standards for example freedoms, lesiure time
Not Measured in $ terms but overall wellbeing.