Chapter 1: The Functioning of an Economy: Basic Concepts | 11 |
civilization. The increasing wants are an incentive, which motivates
the people to work hard. Production gets stepped up, economic
activities fl ourish and nations prosper only because human wants
keep multiplying at a rapid pace.
STANDARD OF LIVING
With reference to a person, a family, or a body of people, standard
of living means the extent to which they can satisfy their wants. If
a group of people can afford only the minimum amount of food,
clothing and shelter, their standard of living is said to be low. If,
on the other hand, these people are able to afford sumptuous food
and costly clothing, live in well-furnished houses and enjoy other
comforts and luxuries, then they ...