What is one potential benefit of increased productivity for workers?

Study for the GCSE Economics Exam with comprehensive flashcards and multiple choice questions. Each question includes hints and detailed explanations. Prepare thoroughly for your exam!

Increased productivity for workers often leads to higher wages, which can significantly improve living standards. When workers are more productive, they contribute more effectively to their organization’s output. This increased output can result in higher revenues for companies, which may translate into higher wages for workers as employers recognize and reward their contributions.

Additionally, higher productivity often allows companies to be more competitive in the market. This competitiveness can lead to greater profitability, enabling firms to afford better compensation packages for their employees. As workers receive higher wages, they can enjoy an enhanced lifestyle, access to better services, and a more secure financial future.

The other options highlight potential negative outcomes or indirect effects of productivity increases. For instance, reductions in working hours might occur in some situations, but the primary focus here is on the direct correlation between productivity gains and improved wages. Job losses due to automation and decreased job security are typically associated with increased productivity in an economy, but they represent challenges rather than benefits. Hence, the correct choice emphasizes the positive impact of increased productivity on wages and living standards.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy