Factors Affecting Standard of Living

FACTORS AFFECTING STANDARD OF LIVING DIFFERENCE IN COST OF LIVING A higher National Income figure is required to maintain a high apostrophize of invigoration. Therefore, if the cost of sustenance is higher in country B, the standard of living cannot be three times higher. The cost of living is determined by the amount of bills needed to buy the goods and services necessary to maintain a specific standard of living. In 1890, the Bureau of Labor Statistics do the first attempt to gather data on the cost of living in the United States, introducing the cost-of-living index. In 1944 the government changed the depict of its measurement from the cost-of-living index to the consumer price index (CPI), when a presidential committee made a comprehensive study and reason out that the cost-of-living index did not glitter all changes in living costs. (US History Encyclopedia, 2010). The difference in specie can similarly affect the cost of living in different countries. selective information on relative standards of living is normally adjusted to reflect estimates of purchasing power parity to take account of differences in the cost of living so that each unit of currency has approximately the homogeneous purchasing power. (WorkGateways, 2010).

In Europe, one Euro of income in each country may not have the same real purchasing power because of differences in the average cost of living. For example, relative prices of a basket of goods and services for consumers in Britain atomic number 18 estimated to be 18% higher than the European Union 15 average in year 2003. DIFFERENCE IN geographical CONDITIONS Different geographical conditions can cause the standard of living to differ due to different climates. An example would be of the universe in Europe that would have to spend on goods such(prenominal) as food and thick clothing to keep themselves warm up during winter. During summer, they would have to spend on an entire different insistency to keep themselves cool. This lowers their annual income available for the... If you want to get a full essay, order it on our website: Orderessay

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