Question

An article in the Economist notes, "For 60 years, from 1770 to 1830 , growth in British wages, adjusted for inflation, was imperceptible because productivity growth was restricted to a few industries." Not until the late nineteenth, when productivity "gains had spread across the whole economy," did a sustained increase in real wages begin. Why would you expect there to be a close relationship between productivity gains and increases in real wages?

Answer 1

Option "A" is the correct answer which is :

Unit cost falls when more goods are produced per worker,so price can fall there by increasing the value of real wages.

Step-by-step explanation:

Greater the production increase at the given resource the more real wage will increase.