Cost Of Living Meaning:
The cost of maintaining a certain standard of living.
Cost Of Living Example:
The concept of cost of living is useful when comparing, for example, different cities. It might be that maintaining a certain standard of living in City A requires an income of only $1,000 per month, while maintaining the same standard of living in City B requires an income of $2,500 per month. Costs for unavoidable expenses such as accommodation, food and transportation are of course crucial to calculating the cost of living in a particular place.
#23 Transaction costs