A textile manufacturing unit faces low productivity due to the workers shirking responsibilities.Which of the following is a possible solution that would increase the productivity of the workers?
A) The provision of a low real wage
B) The provision of a low nominal wage
C) The provision of minimum wages
D) The provision of efficiency wages

Question

Quizplus · Accepted Answer

Providing efficiency wages can be a possible solution to increase productivity by motivating workers to put in more effort and improve their quality of work. Efficiency wages are higher than the market rate and act as an incentive for workers to work harder and more effectively. This, in turn, can lead to increased productivity and improved overall performance for the textile manufacturing unit. The provision of low real or nominal wages or minimum wages may not be effective in motivating workers to increase their efforts and productivity.

A Textile Manufacturing Unit Faces Low Productivity Due to the Workers