Introduction
Why is life so much better today when compared to the harsh life of years past? How is it that with the same 24 hours in a day, life is so much better today?
There have been many changes with technology, education, and capital investments!
- With changes in technology, workers are more productive.
- With more productivity, businesses can pay their workers a higher wage.
This increase in income allows people to afford more goods and services. The basic definition for standard of living is the goods and services available for purchase. As a young person alive today, can you imagine life before air conditioning, cell phones, or the internet?
Following successful completion of this lesson, students will be able to:
- explain the processes for raising productivity.
- describe human capital formation.
- describe physical capital accumulation.
- explain the importance of research and development, and technological progress.
- explain the importance of long-run economic growth.
- describe what standard of living means, and how that equates to living standards and improvements in health.
The above standards correspond with the Alabama Course of Study: Economics Objective(s): 5, 5.1, 5.2.