The "standard of living" of a country means the average person' s② share of the goods and services which the country produces. A country' s standard of living, therefore, depends first and foremost on its capacity to produce wealth. "Wealth" in this sense is not money, for we do not live on ② money but on things that money can buy: "goods" such as food and clothing, and "services" such as transport and entertainment.
A country's capacity to produce wealth depends upon many factors, most of which have an effect on one another. Wealth depends to a great extent upon a country's natural resources, such as coal, gold, and other minerals, water supply and so on. Some regions of the world are well supplied with coal and minerals, and have a fertile soil and a favorable climate; other regions possess none of them.