The standard of living is defined as the level of wealth experienced by a county which is indicated by the average disposable income of the population, ownership of capital equipment, the level of research and access to modern technology and the quality and quantity goods and services enjoyed by citizens.
Level of goods and services available: goods and services are needed to satisfy the needs and wants of a society.
Average disposable income: per capita GNP reveals the average amount of earnings of each person in an economy.
Ownership of capital equipment: Capital goods/investment goods are used to create consumer goods and services locally and for export.
Research and technology leads to innovation and increases production.
Whereas the standard of living is measured by physical quantity, a country’s quality of life is determined by the quality of goods and services enjoyed by citizens. These include: safety (low crime rates), good diet and nutrition, environmental quality, quality of heath and educational facilities, life expectancy, rate of infant mortality and the access to public utilities such as water.