ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Standard of living refers to the level of wealth, comfort, material goods, and necessities available to a certain socioeconomic class or geographic area.

Detailed explanation-2: -Standard of living is the amount of goods and services available to purchase in a country. Real GDP per capita and Gross National Income per capita are the two most common ways to measure the standard of living. GDP measures all transactions within a country’s boundary, while GNI includes those who live abroad.

Detailed explanation-3: -Yet there is a generally accepted measure for standard of living: average real gross domestic product (GDP) per capita. Let’s break it down piece by piece: GDP measures annual economic output-the total value of new goods and services produced within a country’s borders. Real GDP is the inflation-adjusted value.

Detailed explanation-4: -A community with a high standard of living typically enjoys a better quality of life than one at or below the poverty line. These areas have thriving economies that provide employment opportunities and quality goods or services that satisfy the desires and needs of the individuals residing in the area.

Detailed explanation-5: -For instance, the more money an individual makes, the higher the expectations of the standard of living in relation to his or her financial status. This makes the cost of living for such individuals go up even more, meaning that they have to earn more money to sustain the standard.