Relationship between cost of living and standard of living!

[Mellorando]

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.

 

[Jasz]

Cost of living and standard of living are interrelated concepts that are often misunderstood by both employers and employees. Cost of living is the cost of maintaining a certain level of necessities based on geographic location.

The cost of living is the expense required to maintain a certain standard of living. For example, the cost of living in Seattle, WA is different than the cost of living in Scottsdale, AZ because the standard of living is different.

Standard of living measures how well your lifestyle compares to others in your area. The Department of Health and Human Services tracks both metrics across the United States, along with other information about the cost of living where you live, from the average cost to feed a family to how much you should expect to spend on utilities.


On the whole, most people tend to associate higher costs of living with higher standards of living. There are many examples that demonstrate that this assumption is correct in certain situations. For example, take the entire island of Manhattan. It has a very high cost of living, which is why so many businesspeople live there.

The cost-to-benefit ratio is higher than lots of other places, and so they choose to live there due to the amount they get out of their residence. Other places have very low costs of living, but the standard of living may end up being even lower due to spending more money on groceries per person or whatever is being measured for each person living there.

 

[Kingsley]

Cost of living and standard of living are two concepts sounds similar and sometimes could be confused with each other mostly in this part of world where English language is not our first language or native language, but they are indeed very different. when we consider the cost of living of a particular geographical entity, we are looking at the basic cost of the everyday items that makes life comfortable or in that particular place, for example the cost of house rent, the cost of transportation, the cost of food, and the cost of toiletries etc. This individual cost is what is referred to as the cost of living. And these cost differs from place to place. Just like we all know the cost of living in the urban areas are more than that of the rural areas, because of their life style and other factors which rest heavily on comfort.

While standard of living on the other hand is the sum total of all the individual cost in a particular geographical entity. All the Sum total of the cost of food, transportation, rents, toiletries etc. Makes up the what we regard as standard of living. So in apace where all those stuffs are pricey we say the standard is high. Vice versa.