Standard of living of a country can be raised if it increases

The correct answer is: B. Production

The standard of living of a country is the level of material comfort and prosperity enjoyed by its citizens. It is usually measured by indicators such as GDP per capita, life expectancy, and literacy rate.

There are many factors that can affect the standard of living of a country, including:

• Natural resources: A country with abundant natural resources, such as oil or minerals, can generate wealth and raise the standard of living of its citizens.
• Human capital: A country with a well-educated and skilled workforce can produce more goods and services, which can lead to higher incomes and a higher standard of living.
• Technology: Technological advances can lead to increased productivity and higher incomes.
• Government policies: Government policies can have a significant impact on the standard of living, such as policies that promote economic growth, education, and healthcare.

Of the options given, only production is directly related to the standard of living. The other options, while important, are not as directly related.

• Labour force: A larger labour force can lead to increased production, but it is not a guarantee. A country with a large population of unemployed or underemployed workers will not necessarily have a high standard of living.
• Money supply: Increasing the money supply can lead to inflation, which can erode the value of savings and make it more difficult for people to afford goods and services.
• Exports: A country with a large export sector can generate wealth, but it is not a guarantee of a high standard of living. A country that exports raw materials, such as oil or minerals, may not see much of the benefit of the profits from those exports, as they may be captured by foreign companies or governments.

In conclusion, the standard of living of a country can be raised if it increases production. This can be done through a variety of means, such as investing in education and technology, promoting entrepreneurship, and creating a business-friendly environment.