standard of living
Definition
Standard of living is the level of wealth, comfort, material goods, and necessities available to a person or group within a certain geographic area. It reflects how well individuals can fulfill their needs and wants based on their income and economic situation.
Analogy
Think of standard of living as the quality setting for a video game — the higher the setting (higher standard of living), the better the graphics (quality of life), including smoother gameplay (ease of living) with more features and options available (access to goods and services). Just as some players have more advanced gaming setups that allow for higher settings, some people in different regions or socioeconomic statuses have access to resources that provide a higher standard of living.
Related terms
Gross Domestic Product (GDP): The total value of all goods and services produced over a specific time period within a country, indicating its economic health.
Purchasing Power Parity (PPP): A method used to calculate the relative value of different currencies, allowing for an accurate comparison of standard of living between countries by measuring how much a common basket of goods costs in each.
Economic Inequality: The unequal distribution of wealth and income among the members of a society, often leading to varying standards of living within the same region or country
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