Question

There is relation between standard of living of people and volume of trade.

• A. constant
• B. direct
• C. indirect
• D. no

Answer 1

The correct option is B direct

As the living standard of people increases, they demand more goods, which in turn increases the volume of trade. Hence, there is a direct relation. Other factors like availability of natural resources, transportation facilities, and the size of population also have a direct relation to the volume of trade.