Standard
of Living refers to the necessaries, comforts and luxuries which a person is
accustomed to enjoy.
It
can be defined as the mode of living. In other words, the standard of living of
the people means the quantity and quality of their consumption.
Factors
determining standard of living:
The
factors affecting the standard of living have been discussed below, in respect
of country and individual separately.
A.
Factors of which the standard of living in a country depends.
Level
of national income (output):
The
level of national income depends upon the total volume of production in the
country. The countries having higher national income enjoy higher standard of
living.
Level
of productivity:
The
national income depends upon the productivity of a person engaged in
agriculture, industry, industry or any economic activity. Thus high
productivity resulted in high national income and high standard of living. The
advanced countries enjoy high standard of living because their productivity is
high.
Size
of population:
The
per capita income can be estimated by the total national income and size of
population. Thus if size of population is larger, the per capita income will be
smaller and as such standard of living will be lower.
Distribution
of National Income:
It
the distribution of income is not equal, the standard of living will affect.
National income which has been ill distributed resulted into wide disparity.
Thought the per capita income is higher, Due to ill distribution of income few
rich person only enjoy higher standard of living and the masses of people have
to live with extremely low standard.
Level
of Education:
Generally it is observed that educated people
tend to have high standard of living on the contrary the illiterate people are
reluctant to improve the living standard even though they are provided large
income.
General
Price level:
Different countries are having different price
levels. The country having low price level can provide good standard of living
to her people and vice-a versa.
Terms
of trade:
The
terms of trade can be measured by the taking the ratio of price level of its
exports to the price level of its imports, thus only physical production is not
sufficient to have higher standard of living, the terms of trade is also
equally important in this regard.
B.
Factors determining individual standard of living:
Following
are the important factors on which the standard of living of a person depends
1.
Income 2. Size of family 3. Family tradition
4.
Education 5. Social customer 6. General Price level.
Causes
of low standard of living in India:
1.
Low national income
2.
Large size of population
3.
Religious traditions
4.
Social and family obligations.
5.
Under development - Means economically under development in respect
agriculture, industry etc. Hence total national income is low and hence low
standard of living India is enjoying.
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