Final answer:
The high investment in human capital in Europe, particularly through education, is directly related to its high standard of living, as it boosts economic growth, enhances productivity, and improves various aspects of quality of life.
Step-by-step explanation:
The high investment in human capital in Europe is closely related to the standard of living there. After World War II, despite the loss of physical capital and human lives, the remaining skilled workforce and technological knowledge combined to rebuild the economy. Education systems, predominantly funded by governments, play a significant role in creating a skilled and educated workforce, which is essential for economic growth and a high standard of living.
Moreover, the standard of living entails far more than just the gross domestic product per capita; it incorporates health, education, human rights, and environmental quality, which are all areas where Europe has adhered to high standards. Investments in human capital such as education and training contribute to higher productivity and growth, enhancing the quality of life and overall standards of living in Europe. Thus, the interplay between human capital investment and living standards is evident through higher income levels, better health outcomes, and more substantial educational achievements, among other factors.