Question

How did increased productivity during the period of industrialization impact the actions of consumers, producers, and the government?

Answer 1

Answer:

- It make the product cheaper for the consumers

- It increase the amount of income for the producers

- It increase the amount of tax given to the government.

Explanation:

- For consumer:  Cheaper products

As productivity increase, the amount of capital needed to produce a product become lower. As a result, the companies could sell their products to the consumers with lower price but still maintaining the same profit margin.

- For producers: More income

Increase in productivity also led to an increase in sales. During the industrialization period, a the producers managed to accumulate an absurd amount of wealth from the sales of their product.

- For government: More tax

The amount of tax income that the government take is based on the percentage of net income that the producers generate. The more producer get from their sales, the more taxes that the government can take.