Which of the following best describes the relationship betwe

Which of the following best describes the relationship between productivity and standard of living?

A. Productivity only increases revenue to investors, while general well-being is not affected.

B. A country\'s standard of living and its productivity are closely related.

C. International trade makes a country\'s productivity irrelevant.

D. A rich country can enjoy a high standard of living without the need for high productivity.

Solution

Every country will have its own productivity level in all the three sectors in their own manner

Agricultural sector

Production sector

Service sector

Standard of living and productivity are closely related. Productivity Increases the level of employement for the people in the nation and once the level of income of the people increases the standard of living will also increase.

If productivity increases in the nation then the products produced will also become cheap due to its modern method of production thus it fetches the chance of making it to export level wher the country can enjoy and manage balance of payments and balance of receipts.

Directly or indirectly productivity will have a good impact of it onto the living standard of the people