Chapter 1, Problem 1RQ

What role does manufacturing play relative to the standard of living of a country?

To determine

The role of manufacturing relative to the standard of living of a country.

Explanation of Solution

The world we see today is entirely different from the way it used to look 100 years ago. This is all due to the mammoth construction work which took place at exponential speed during the last century. The construction work is incomplete without having some steel reinforcement. Steel plays a vital role in our day to day life.

The steel is ubiquitous, and the importance of this amazing material can not be ignored in shaping this modern world.

The manufacturing industry has entirely changed the face of this earth, now the entire economies are driven by the manufacturing sector. These economies are termed as manufacturing economies. A huge amount of manufacturing taking place reduces the manufacturing cost per item and eventually increases the purchasing power of the consumer.

The purchasing power implies that with the same amount of money, people are entitled to buy more things. An enhanced purchasing power of the consumer is directly related to the enhanced standard of living in the country.

This certainly is helpful in raising the standard of living in the country.