Question

What are the four other factors that determine the economic standard of living around the world?

Short answer

The geography, demography, industrial structure, institutions determine the standard of living.

Step-by-step solution

Step 1. Meaning of standard of living.

The term standard of living implies the availability of goods, services, and income for a population to lead a comfortable life. Economic growth should be accompanied with an improvement in standard of living.

Step 2. Factors determining economic standard of living.

a) Geography.

b) Demography.

c) Industrial structure.

d) Institution.

Step 3. Geography as a determinant of standard of living.

Countries have geographic difference, some have extensive coastline, some are land locked etc. Thus, it plays major role to determine the standard of living.

Step 4. Demography as a determinant of standard of living.

Countries also have considerable difference in the age distribution of the population which is scenario to determine the development of a country.

Step 5. Industrial structure as a determinant of standard of living.

High income economies of the world show difference in industrial structure. Very less percentage of GDP comes from agriculture. Thus, the industrial structure shows the growth of GDP of a country.

Step 6. Institutions as a determinant of standard of living.

Difference in economic institutions also contributes to differences in standard of living. For instance, extremely market oriented countries perform better than command economies.