Incomes in the United States have historically grown about 2 percent per year af
ID: 1147905 • Letter: I
Question
Incomes in the United States have historically grown about 2 percent per year after adjusting for changes in the cost of living. Which of the following is the primary reason for this increase in living standards?
A. The rise of labor unions
B. The decrease in competition from abroad
C. The increase in productivity
D. The imposition of minimum-wage laws
What can the government do to boost living standards? Check all that apply.
A. Encourage research and development to ensure workers have access to the best available technology.
B. Impose trade restrictions to reduce competition from abroad.
C. Improve education and expand literacy among its citizens to ensure workers are well educated.
Explanation / Answer
Solution:-
1) The correct answer is (c) that is an increase in productivity.
Reason:- Any change in living standard is primarily due to change in country's productivity that is the number of goods and services produced from each hour of a worker's time. In the US workers must be producing a larger quantity of goods and services per unit of time than before and as a result, enjoying a higher standard of living.