Standard Of Living

AAA

DEFINITION of 'Standard Of Living'

The level of wealth, comfort, material goods and necessities available to a certain socioeconomic class in a certain geographic area. The standard of living includes factors such as income, quality and availability of employment, class disparity, poverty rate, quality and affordability of housing, hours of work required to purchase necessities, gross domestic product, inflation rate, number of vacation days per year, affordable (or free) access to quality healthcare, quality and availability of education, life expectancy, incidence of disease, cost of goods and services, infrastructure, national economic growth, economic and political stability, political and religious freedom, environmental quality, climate and safety. The standard of living is closely related to quality of life.

INVESTOPEDIA EXPLAINS 'Standard Of Living'

The standard of living is often used to compare geographic areas, such as the standard of living in the United States versus Canada, or the standard of living in St. Louis versus New York. The standard of living can also be used to compare distinct points in time. For example, compared with a century ago, the standard of living in the United States has improved greatly. The same amount of work buys an increased quantity of goods, and items that were once luxuries, such as refrigerators and automobiles, are now widely available. As well, leisure time and life expectancy have increased, and annual hours worked have decreased.

RELATED TERMS
  1. Cost of Living

    The amount of money needed to sustain a certain level of living, ...
  2. Poverty

    A state or condition in which a person or community lacks the ...
  3. Labor Productivity

    A measurement of economic growth of a country. Labor productivity ...
  4. Per Capita

    A Latin term that translates into "by head," basically meaning ...
  5. Inflation

    The rate at which the general level of prices for goods and services ...
  6. Emerging Market Economy

    A nation's economy that is progressing toward becoming advanced, ...
RELATED FAQS
  1. What are some examples of failed subsidies?

    There are a few different ways to evaluate the success of government subsidies. Most economists consider a subsidy a failure ... Read Full Answer >>
  2. How is comparative advantage used as a justification for free trade policies?

    The theory of comparative advantage suggests that total economic welfare in all countries is improved when countries focus ... Read Full Answer >>
  3. What impact to public-private partnerships have on economic growth?

    It's impossible to evaluate the complete impact of public-private partnerships (PPP) on overall economic growth. It is likely ... Read Full Answer >>
Related Articles
  1. Insurance

    An Introduction to Microfinance

    Is microfinance a way to help the poor, or will it just make them poorer?
  2. Economics

    Does High GDP Mean Economic Prosperity?

    GDP is the typical indicator used to measure a country's economic health. Find out what it fails to reveal and how the Genuine Progress Indicator can help.
  3. Budgeting

    3 Alternative Budgeting Styles: Which One Suits You?

    Not everyone is cut out for online or heavily-involved budgeting. Here are some budgeting solutions.
  4. Retirement

    Two Roads: Debt Or Financial Independence?

    A higher income won't make you richer - unless you learn to live on less.
  5. Fundamental Analysis

    Standard Of Living Vs. Quality Of Life

    What is the difference between a standard of living and quality of life? Find out in this breakdown.
  6. Fundamental Analysis

    Profit By Understanding Fundamental Trends

    Fundamental trends are an important driver of financial markets and every investor and entrepreneur should analyze them.
  7. Retirement

    All About Inflation

    What causes inflation? How does it affect your investments and standard of living? This tutorial has the answers.
  8. Economics

    What's Aggregate Demand?

    Aggregate demand is a macroeconomic term describing the total demand in an economy for all goods and services at any given price level in a given time period.
  9. Personal Finance

    Can A Family Survive On The U.S. Minimum Wage?

    As the political debate roars on, the numbers are clear: Even two full-timers at U.S. minimum wage can't keep a family of four above the poverty line.
  10. Economics

    The World's Top 10 Economies

    A look at the top ten economies in the world.

You May Also Like

Hot Definitions
  1. Asset Class

    A group of securities that exhibit similar characteristics, behave similarly in the marketplace, and are subject to the same ...
  2. Fiat Money

    Currency that a government has declared to be legal tender, but is not backed by a physical commodity. The value of fiat ...
  3. Interest Rate Risk

    The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between ...
  4. Income Effect

    In the context of economic theory, the income effect is the change in an individual's or economy's income and how that change ...
  5. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
  6. Hurdle Rate

    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, ...
Trading Center