That is to say, productivity and standard of living indeed have a close link, and the former influences the latter greatly. No Change . Decrease. Learning Objectives. 30 seconds . ... is built on a foundation of productivity improvements. A. Americans enjoyed a higher standard of living than any other nation. productivity and that measure of the national standard of living. The standard of living is closely related to the quality of life. B. Q. Higher productivity increases wages. Tags: Question 6 . C. International Trade Makes A Country's Productivity Irrelevant. Level of Productivity: The total amount of goods and services which a country is able to produce, and hence the standard of living it can provide to its people, depends upon the levels of productivity in different branches of economic activity such as agriculture, industry, transport, etc. Productivity is important in economics because it has an enormous impact on the standard of living. A Country's Standard Of Living And Its Productivity Are Closely Related. Order Code RL34073 Productivity and National Standards of Living July 5, 2007 Brian W. Cashell Specialist in Quantitative Economics Government and Finance Division Productivity and National Standards of Living Summary Among the goals of economic policy is a rising standard of living, and it is generally understood that the means to that end is rising productivity. When economists talk about the standard of living, they are referring to the average quantity (and quality) of goods and services that people in a country can afford to consume.Since real GDP measures the quantity of goods and services produced, it is common to use GDP per capita, that is real GDP divided by population, as a measure of economic welfare or standard of living in a nation. b) A country's standard of living and its productivity are closely related. What is the most widely used economic system in the world? answer choices (Turcotte and Rennison, 25-30) What was one result of the increased productivity in the 1950's? There are different notions of productivity but we will refer to labour productivity or output per worker (or more accurately output per hour worked), which … answer choices . SURVEY . c) International trade makes a country's productivity irrelevant. In turn, productivity increases are the result of greater human and physical capital and technology, all interacting in a market-driven economy. Increase. Productivity Only Increases Revenue To Investors, While General Well-being Is Not Affected. A country’s ability to improve its standard of living over time depends almost entirely on its ability to raise its output per worker. It is certain that the level of productivity is the most important determinant of a certain country’s standard of living, with faster productivity growth leading to an increasingly better standard of living. The link between productivity and living standards is not a direct one, therefore countries with a high level of productivity ma y not necessarily have the highest standard of living. Technology plays an important part in raising productivity. That’s according to economist Robert Gordon, who says: “The positive effect of instant messaging and video gaming on productivity and living standards pales in comparison”. 32.2 Improving Countries’ Standards of Living. Productivity varies over time, and it varies across countries as well. An increase in a country's productivity generally indicates a(n) _____ in the country's standard of living. Those developed societies have high ranks of living standards with longer life and a diversity of up to date gadgets to make their life easier. 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