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
Correct Answer:
Option B – A lower cost of living give a higher standard of living
Explanation
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.
