Factors Determining a Country's Material Standard of Living

Flashcards covering the factors determining a country's material standard of living and related concepts.

A country's material standard of living is influenced by __.

Original natural resources, the nature of people, capital equipment, organization of factors of production, knowledge of techniques, political organization, foreign loans and investments, and the terms of trade.

The effectiveness of natural resources and labor depends almost entirely on __.

capital equipment.

Investment, or the addition to capital, is the most important single cause of __.

material progress.

A stable government promotes confidence and thereby encourages __.

saving and investment in long-term capital projects.

The terms of trade refer to the quantity of another country's products that a nation gets in exchange for __.

a given quantity of its own products.

Gifts made to countries for purposes of economic development and defense can improve __.

the standard of living of the receiving countries.

To achieve the maximum output from scare factors of production, they must be __.

organized efficiently.

The rapid increase of the standard of living in Canada over the last hundred years has largely been due to the development of __.

new inventions such as the steam-engine and electrical power.

Fluctuations in the __ are likely to be far more important in changing material welfare in a short period.

terms of trade.