Living standards

Question 1

Material living standards

Answer 1

The ability of an individuals to access goods and services.

Question 2

Non-material living standards

Answer 2

Looks at the wider range of the factors other than purchasing power that affect a person’s well being and thus their overall quality of life.

Question 3

Factors affecting living standards

Answer 3

• Access to goods and services.
• Environmental quality.
• Physical and mental health.
• Life expectancy.
• Crime rates
• Literacy rates

Question 4

Access to goods and services

Answer 4

When real GDP per capita increases, average incomes increase over time and citizens will be able to purchase more goods and services.

Does not take into account:

• Negative externalities
• Uneven income distribution
• People who produce their own products
• Charity donations

Question 5

Environmental quality

Answer 5

If resources are depleted at an excessive rate, then in short or long term, MLS will decline

Question 6

Physical and mental health

Answer 6

Healthy population is likely to be more productive and leads to increase in access to goods and vice versa

People with illness may have to rely on welfare payments meaning more taxes, decreasing MLS.

Isolation in Covid

Question 7

Life expectancy

Answer 7

the number of years an average person in a nation can expect to live.