Final answer:
Real wages are likely to be high when worker productivity is high, as firms generally compensate workers in relation to the value of their output. Increased productivity often leads to higher wages, while wages that exceed productivity can result in employer losses.
Step-by-step explanation:
The real wages of workers will tend to be high when output per worker is high. This is because productivity growth is closely linked to the average level of wages. As productivity per hour is the most important determinant of the average wage level in any economy, an increase in output per worker indicates that employees are being more productive, which usually leads to higher wages.
For instance, if firms are paying workers less than the value of the output they produce, other employers may offer higher wages to capitalize on the workers' productivity. Conversely, if employers pay more than what their workers produce, they are likely to incur losses.
Thus, productivity and the accompanying investment in machinery and capital that can increase a worker's output are essential considerations for wages.