Question

How does increased production of goods and services in a country contribute to a higher standard of living?

• A. Increased production of goods and services ensures higher profits for business owners.
• B. Increased production of goods and services provides more employment opportunities to people, increasing their level of income.
• C. Increased production of goods and services boosts the import of the country.
• D. Increasing the production of goods and services does not impact the standard of living of the people.

Answer 1

The correct option is B Increased production of goods and services provides more employment opportunities to people, increasing their level of income.

To increase the production of goods and services, a country needs to set up more economic activities like manufacturing, transportation, etc. These activities provide employment opportunities to people. As a result, people earn more, thereby achieving a higher standard of living.