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Material standard of living

Definition. The material standard of living refers to the quantity of goods and services that people in an economy are able to consume, reflecting their economic wellbeing. It is commonly measured by real national income per capita, which adjusts for inflation and population size.

It captures only the material dimension and excludes non material factors such as leisure, health, the environment and political freedom. These quality of life elements form part of the broader standard of living.

This term belongs to Standard of Living in A Level Economics. Read the full chapter for the diagrams, worked examples and exam technique.

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