When the productivity of organizations in a country improves, people
A are forced to buy goods and services at higher prices.
B get goods and services at lower prices.
C end up paying for services that are taxed at higher rates.
D get lower wages from their employers.
The correct answer and explanation is:
The correct answer is B: get goods and services at lower prices.
When the productivity of organizations in a country improves, it typically leads to a decrease in the cost of production for businesses. Higher productivity means that companies can produce more goods and services with the same or fewer resources. This often results from technological advancements, better labor efficiency, or improved supply chain management. As production costs drop, businesses are often able to reduce the prices they charge consumers. Lower production costs can be passed on to consumers in the form of lower prices for goods and services, benefiting the general population.
In addition, improved productivity tends to boost overall economic efficiency. With businesses producing more efficiently, the economy grows, potentially increasing the availability of goods and services. This can create a more competitive market, which further drives prices down, as companies aim to attract customers with better value. More competition in the market typically leads to lower prices, benefiting consumers.
Furthermore, as organizations become more productive, they may be able to allocate more resources toward innovation and expansion. This can create more job opportunities and potentially raise wages over time, although this depends on the broader economic conditions.
Overall, when productivity improves, consumers typically benefit from lower prices, which increases their purchasing power and enhances their standard of living. The reverse effect, where prices increase due to rising productivity, is not typical unless inflation or other economic factors come into play.