Question

The relationship between the cost of living and standard of living is

A A rise in cost of living gives a corresponding rise in standard of living
B A lower cost of living give a higher standard of living
C A lower cost of living give a lower standard of living
D None of the above

Answer 1

The correct answer is B. A lower cost of living give a higher standard of living

Cost of living is the amount of money individuals spent on consumption while the standard of living is the state of economic well being. Therefore, a fall in the cost of living leads to a rise in standard of living.

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