“c02DomesticMacroeconomicGoals_PrintPDF” — 2022/7/23 — 6:51 — page 105 — #5
2.2 The difference between material and non-material living standards and factors that may affect each KEY KNOWLEDGE
Living standards refer to how well off a nation is overall. Living standards are affected by both material aspects (related to incomes and the quantity of goods and services consumed per person) and non-material aspects (e.g. quality aspects of daily life including happiness, mental health, pollution, relationships).
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Many people seek an improvement in their overall living standards or general level of wellbeing.
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Source: VCE Economics Study Design (2023–2027) extracts © VCAA; reproduced by permission.
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The purpose of economic activity • The difference between material and non-material living standards and factors that may affect living standards, including access to goods and services, environmental quality, physical and mental health, crime rates and literacy rates
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There are two main elements that affect our general or overall living standards: • the level of material living standards • the level of non-material living standards (i.e. wellbeing).
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Influences on Australia’s overall living standards (the general wellbeing of society)
Non–material living standards depend on the quality of daily life for all people. These might reflect the following ...
levels of national production and income per head
levels of personal happiness
ways in which goods, services and incomes are distributed or divided across the population
levels of freedom, democracy and equity of opportunity
rates of employment and unemployement
physical and mental health and life expectancy
rates of inflation affecting purchasing power of incomes
environmental quality and pollution levels
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Material living standards depend on the real quantity of goods and services consumed by each person per year. These might reflect the following ...
quality of personal relationships
leisure time relative to hours of work
crime rates and personal safety
literacy and cultural enrichment
TOPIC 2 Domestic macroeconomic goals
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