Question

True or False: In the long run, a country's production of goods and services and the standard of living of its citizens are independent of each other because countries have the opportunity to import goods and services.

Answer 1

"In the long run, a country's production of goods and services and the standard of living of its citizens are independent of each other because countries have the opportunity to import goods and services" is FALSE.

Option: B

Explanation:

A nation's manufacturing of goods and services and the standard of living of its citizens is related by economist as the increase in GDP gives logically idea of standard of living of people in many cases but may vary practically with some exceptions. Thus these two factors will remain dependent either in short or in long run.

This is because if more goods have been produced by people more profit under law and order they earn which helps in increasing their standard of living while some exception may exist too like employees or workers with low salary and more work cannot allow them to increase their living standard, thus with production of goods and services the salary structure is also needed to be maintained to correlate these factors.