1) Please provide an explanation on the saying, "Households are demanders but they are also suppliers.”
2)What factors affect an individual’s standard of living?
1) The saying "Households are demanders but they are also suppliers" refers to the dual role of households in the economy. On one hand, households act as demanders by consuming goods and services. They have needs and desires, and they express this demand by purchasing goods and services in the market. This is the more commonly understood aspect of households' role in the economy.
On the other hand, households also act as suppliers. They contribute to the production of goods and services by providing inputs such as labor, capital, land, and entrepreneurship. Through their participation in the labor market, households offer their skills and knowledge to businesses, which is crucial for the production of goods and services. For example, individuals work in various organizations and contribute their labor, thus playing a role as suppliers.
Essentially, households are both consumers and workers. They create demand for goods and services in the market by purchasing them, but they also supply resources and labor to businesses and the overall economy.
2) An individual's standard of living can be influenced by several factors. These factors can be broadly categorized into two main groups: economic factors and non-economic factors.
Economic factors include income level, employment opportunities, and access to resources. A higher income level generally allows individuals to afford better housing, healthcare, education, and other essential goods and services, thereby improving their standard of living. Access to employment opportunities can also contribute to a higher standard of living, as it provides individuals with a stable income and the ability to meet their financial needs. Additionally, access to resources, such as clean water, energy, transportation, and infrastructure, also impact the standard of living.
Non-economic factors encompass various aspects like education, healthcare, social support systems, and the overall quality of life. Education plays a critical role in improving an individual's standard of living by offering better employment prospects, higher earning potential, and increased personal development. Quality healthcare and access to healthcare services also contribute to a higher standard of living by promoting well-being and longevity. Furthermore, social support systems, such as a strong community, family bonds, and government assistance programs, can provide individuals with the necessary support and resources to enhance their standard of living.
It is important to note that these factors can interact and have interdependencies. For instance, a higher income level may allow access to better education and healthcare, which in turn can lead to better employment opportunities and an overall improved standard of living.