OLET1143 – How Economic Policy Remade Australia – Final Essay
August Intensive 2023
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You are required to submit an essay of 1,000 words by 3 September 23:59 (that is, 11.59pm). The
essay should answer the following question:
You have been asked by the government to prepare a short essay using economic arguments on
productivity in Australia. Improving productivity is a major goal of economic policy in Australia. This
essay explores the determinants of productivity and related policy issues. Your report needs to
address the following:
• What is productivity and why is it important? There are of course different types of productivity –
which one would be the most appropriate target for government policy and why? What has been
happening with productivity in Australia over the past several decades? Use relevant model(s) to aid
your discussion.
• What, if any, is the role of increasing internationalisation of the Australian economy on
productivity? Does your answer help explain trends in Australian productivity? Are there any
scenarios in which increasing internationalisation could lead to lower productivity?
• How might microeconomic reform affect productivity? Using models from the unit of study,
critically evaluate the connection between microeconomic reform and productivity.
• Examine what has been occurring to employment and unemployment in the Australian labour
market. What role has labour market (and microeconomic reform more generally) had on these
trends? Again using the tools of analysis from the unit, is there any link to productivity?
• Being careful to explain your answer, what, if any, is the connection between productivity and the
Australian government’s other policy goals.
In your answer you should use economic arguments drawing on the lessons learnt in OLET1143. You
might consider referring to the following:
https://www.pc.gov.au/ongoing/productivity-performance
https://treasury.gov.au/policy-topics/measuring-what-matters/dashboard/productivity
https://treasury.gov.au/sites/default/files/2022-10/p2022-325290-overview.pdf
You are also encouraged to undertake other independent research and draw on the resources that
have been provided throughout the course of OLET1143.
Use of any AI software is not permitted to assist in completing this assignment.