The Australian economy experienced a faster increase in productivity between 1995 and 2008 compared to most other leading industrial economies in the G7. Which of the following helps to explain this?
A)Australian unions imposed stricter work rules as compared to unions in the G7.
B)Australian government regulations impose stricter work rules as compared to government regulations in the G7.
C)Australian labour markets were more flexible than labour markets in many other industrial countries.
D)Australian workers could obtain unemployment benefit payments for a longer period of time as compared to the G7 countries.

Question

Quizplus · Accepted Answer

The statement suggests that higher productivity in Australia was due to flexible labour markets in comparison to other industrial countries. Therefore, option C is the best choice to explain this. Options A and B suggest more strict regulations, which would typically lead to reduced productivity. Option D is not directly related to productivity, and therefore, cannot be the reason for Australia's better performance.

The Australian Economy Experienced a Faster Increase in Productivity Between