How is standard of living defined?

• A. Overall wealth of a nation
• B. Economic stability of a region
• C. Economic well-being of individuals or households
• D. Access to luxury products and services

Answer: (C)

The standard of living is defined as the economic well-being of individuals or households, which encompasses various factors that contribute to the quality of life experienced by people. This includes income levels, employment, class disparity, poverty rates, housing affordability, and access to healthcare, education, and basic services.

By focusing on the economic well-being of individuals or households, this definition captures the essence of what standard of living implies—how comfortably people can live, their ability to meet basic needs, and the overall quality of life they can maintain, influenced by their financial resources and opportunities available in their environment.

In contrast, while overall wealth of a nation and economic stability of a region are related concepts, they do not specifically reflect the direct experience of individuals or households. Access to luxury products and services, while indicative of higher standards of living for some, does not capture the broader and more crucial components that determine whether individuals can meet their essential needs.