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Example: workers should benefit from higher output

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User T Q
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Final answer:

Workers benefit from higher output as it typically drives up productivity, resulting in a variety of goods at lower prices and potentially higher wages based on their increased value of output.

Step-by-step explanation:

The querying statement "workers should benefit from higher output" relates to the concept that consumers benefit from increased productivity, which in turn often means a larger variety of goods are available at lower prices. This is because productivity growth is intrinsically linked to the economic principle that efficient use of resources and expert application of factors of production can lead to an expanding economy. Investment in human capital is seen as a key way to improve the workforce, with education and development of skills leading to a competent and motivated workforce, hence driving up productivity.

Higher productivity can have several impacts. It possibly leads to higher wages, as employers will usually pay workers based on the value of the output they generate. Firms may also resort to more capital-intensive production techniques in response to union demands for higher wages, which can also result in increased labor productivity. Additionally, it's contended that low-income countries might hold an advantage in achieving greater worker productivity and economic growth in the future.

Therefore, when workers are proficient and workplaces are specialized, this not only benefits the company by increasing productivity but also improves the lives of the employees due to potentially higher earnings. In the long run, productivity per hour appears to be the most pivotal determinant of average wage levels in any economy.

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User Abdullah Shahin
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