Final answer:
Olympic cities like Madrid rank high in the urban hierarchy due to their capacity to offer high-order goods and services. Issues such as environmental and health conditions can affect their global perceptions, as seen with Rio de Janeiro in 2016. Moreover, living standards are compared using indicators of health, education, income, air quality, and sustainable development.
Step-by-step explanation:
When considering Olympic cities such as Madrid and their rank compared to other global cities, it's important to look at them in terms of the availability of goods and services. The largest cities often offer high-order goods and services which are not found in smaller cities or towns. This includes businesses and functions that cater to larger populations and more sophisticated demands, such as major league sports teams or highly specialized boutiques. Mid-sized cities, or regional service centers, tend to offer some of these goods and services but to a lesser extent. Cities like Madrid that have hosted the Olympics typically have the infrastructure and global recognition that places them higher up in the urban hierarchy. Conversely, when looking at the 2016 Olympic Games in Rio de Janeiro, issues of environmental, safety, and health conditions have highlighted the social stratification and challenges even large cities face.
Comparing standards of living around the world, one could look at various indices that measure health, education, income, and environmental quality. For instance, air quality can significantly impact citizens' health and quality of life, as shown by the air pollution index data fetched from areas like the capitals of various countries. Furthermore, facets such as education standards and the quality of teaching — with top-performing nations recruiting the best talent for educators — play a crucial role in enhancing the standard of living. Sustainable urban development, especially in rapidly urbanizing areas, also remains a significant challenge and factor for comparing global living standards.