A Country's Standard of Living Depends on its ability to produce goods and services (8th Principle)
Harry's Creative Factory
Published at : 27 Jan 2021
What explains large differences in living standards among countries? Why are some countries rich and some countries poor? The answer is simple. Almost all variation in living standards depends on differences ‘in countries’ productivity-that is, the amount of goods and services produced from each hour of a worker’s time. In nations where workers can produce a large quantity of goods and services per unit of time, most people enjoy a high standard of living; in nations where workers are less productive, most people endure a more meager existence. Similarly, the growth rate of a nation’s productivity determines the growth rate of its average income. This Eight Principle of Mankiw is explained in Hindi by Dr. Harishchandra Singh Rathod.