15. Productivity and the standard of living
Consider two hypothetical economies, Breitland and Corvakia. Which of the following could help explain why Breitland has a higher overall standard of
living than Corvakia? Check all that apply.
The government in both economies has imposed a lower limit of wages; in particular, the minimum wage in Breitland is C10 per hour, and
the minimum wage in Corvakia is C12 per hour.
The population percentage with a post-16 education or above is 45% in Breitland and 10% in Corvakia.
People residing in Breitland save more than those in Corvakia; saving is an important source of investment funds that can be used to
build new factories and buy new machines.