What is the most important factor that explains differences in living standards across countries? a. the quantity of money?

The correct answer would be, Productivity. Productivity is the most important factor that explains differences in living standards across countries.

Explanation:

Countries are considered poor or rich on the basis of how productive they are. Productivity means the state of being productive. It is the rate of Output per unit of Input. The countries which are considered better than other countries have more unit of output on per unit of input. The productivity is generally estimated through the industries. The effectiveness of productive efforts in industries will lead a country to the top of the list of most productive countries.

For example, if a country is able to produce 1 ton of a product through an equipment and the other country is able to produce 10 tons of the same product through the equipment, it is assumed that the other country is more effective and productive than the first country.

Group of answer choices:

A) labor unions

B) minimum wage laws

C) productivity

D) efficiency

The correct answer is letter "C": productivity.

Explanation:

Productivity defines the relationship of output in comparison with the inputs required to generate those outputs. It is an efficiency indicator. A country's total production for a given time is determined by estimating its Gross Domestic Product (GDP).

If GDP is divided by a country's total population it is called GDP per capita, which represents average per-person spending. This measure helps to have an understanding of what these people's lifestyles are. Usually, smaller wealthy countries such as Switzerland have higher GDP per capita showing a better quality of life.

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