Final answer:
Highly productive workers are highly paid, and less productive workers are less highly paid because their productivity determines their value to the employer and, consequently, their wages.
Step-by-step explanation:
Highly productive workers are highly paid, and less productive workers are less highly paid due to the link between productivity and wages. When workers are more productive and produce more output, employers are willing to pay them higher wages to compensate for their higher value. On the other hand, less productive workers who produce less output receive lower wages because their value to the employer is lower.
Productivity growth is a key factor in determining wages. If employers pay workers less than their productivity, other employers will offer higher wages to attract those workers. Similarly, if employers pay workers more than their productivity, they will face losses. Thus, productivity per hour is the main determinant of the average wage level.
Example: Suppose there are two workers, Adam and Bob, working in a manufacturing company. Adam is highly productive and is able to produce 20 units of output per hour. Bob, on the other hand, is less productive and can only produce 10 units of output per hour. As a result, the company pays Adam a higher wage because his higher productivity adds more value to the company compared to Bob.