Mellorando
Banned
Cost of living in may be defined as the amount of money and individual spends to attend the goods and services which will sustain him at a particular time. It is thus the money cost of things as food shelter, clothing, medical services etc which the individual consumes. the cost of living depends largely on the prices of goods and services if prices are higher the cost of living go behind since the individual will have to spend more money to obtain goods and services but if the prices are low less money will be spent hence the cost of living will be low.
Standard of living may be defined as the level of economic well-being or welfare attend by individuals in a country at a particular time. the level of welfare is determined by the quality and quantity of goods and services consume within a period of time the higher the quantity and quality of goods and services consumed the higher their standard of living and vice versa the income per head and the distribution of income are used in measuring the standard of living.
now what are the relationship between cost of living and standard of living.
Cost of living as explained above largely depends on the prices of goods and services which are consumed if the prices of goods and services are high this means an increase of the cost of living since people have to pay more money to get them. If prices increase people purchase fewer goods and services they therefore consumes less and this result to a fall in their standard of living.
On the other hand if prices of goods and services for people will be able to obtain them in greater amounts. this means a fall in the cost of living they will also purchase high-quality goods and services this will increase their level of consumption and their standard of living increase. In summary a rise in the cost of living reduces their standard of living while a reduction in the cost of living increases the standard of living it is the cost of living that determines the standard of living.
Standard of living may be defined as the level of economic well-being or welfare attend by individuals in a country at a particular time. the level of welfare is determined by the quality and quantity of goods and services consume within a period of time the higher the quantity and quality of goods and services consumed the higher their standard of living and vice versa the income per head and the distribution of income are used in measuring the standard of living.
now what are the relationship between cost of living and standard of living.
Cost of living as explained above largely depends on the prices of goods and services which are consumed if the prices of goods and services are high this means an increase of the cost of living since people have to pay more money to get them. If prices increase people purchase fewer goods and services they therefore consumes less and this result to a fall in their standard of living.
On the other hand if prices of goods and services for people will be able to obtain them in greater amounts. this means a fall in the cost of living they will also purchase high-quality goods and services this will increase their level of consumption and their standard of living increase. In summary a rise in the cost of living reduces their standard of living while a reduction in the cost of living increases the standard of living it is the cost of living that determines the standard of living.