Developed Economy's Living Standard Indication Factor

One Factor That Indicates A Developed Economy's Standard Of Living Is Its

A) High GDP per capita

B) Large geographical area

C) Abundance of natural resources

D) High population growth rate

Correct Answer: A)

High GDP per capita

Explanation

Gross Domestic Product per capita is one key aspect that showcases a country's standard of living. It shows an average economic output per person. This generally showcases the key standard of living, like education, services, healthcare, and technology. 

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Why not the other options?

B) Large geographical area

• Countries with a large geographical area don’t always offer a better standard of living compared to those with smaller areas. 

C) Abundance of natural resources

• While an important factor, the presence of natural resources isn't as accurate a factor as the others. Moreover, the proper usage of natural resources is more important than resource availability.

D) High population growth rate

• While a high population growth rate is one key indicator of a well-developed economy, it often strains the resources. Hence is not a valid choice.

FAQ’s

Q1. How does the quality of infrastructure affect the standard of living?

Infrastructure commonly refers to better roads, reliable transportation, power supply, and housing availability. These factors directly correlate to the standard of living and hence better quality for these means better standards too.

Q2. What role does economic diversification play in development?

A healthy, developing economy requires varied industries to run well. This includes technology, manufacturing, and services, each growing steadily. Hence, economic diversification is important.

Q3. Can a country with a small population have a high standard of living?

Yes, even a country with a small population can have a high standard of living. Luxembourg and Norway are examples that show the standard of living isn't dependent on population.

Q4. How does environmental sustainability tie into economic development?

An efficient economic development includes giving the best service to those in the present while safeguarding the resources for those in the future. Sustainable environmental practices lead to clean air, better waste management, and better resource utilization, all of which are key indicators of economic development.

Q5. Does technological access influence the standard of living?

So, yes, access to better technology does have its influence on the standard of living, too. High-quality internet, better educational standards, improved healthcare, and much more are offered through better technological access.

Q6. What is the relationship between the standard of living and income equality?

Income equality refers to the situation where the difference between the top and bottom % earners of a country isn't too far apart. It has a direct correlation with the standard of living, as income equality means better facilities for all. Otherwise, even in high-earning countries, the lower wage earners would still live in relative poverty. 

Q7. Why is life expectancy a useful measure for development?

Longer life expectancy is a direct reflection of overall development standards. It showcases better healthcare, improved technology, access to proper nutrition, and an overall better quality of life.