If the average income of an Australian is higher than the average income of a Russian, it is most likely because a there is more competition in Australia than in Russia. b labor unions are more powerful in Australia than in Russia. c productivity is higher in Australia than in Russia. d Australia has a more industrial economy than Russia.

Answer: Option (c) is correct.

Explanation:

Productivity refers to the value that is devoted by the employee or a workers in the production of the goods and services. There is a direct relationship between the wages or income of a worker and productivity of a worker. This means that if there is an increase in the productivity of an employee, then as a result wage rate or income level of that employee also increases. Higher productivity increases the output of the firm, as a result revenue of the firm increases, then this will lead to increase in the income level of the employees.

Therefore, the productivity is higher in Australia than in Russia.

Hence, the average income of an Australian is higher than the average income of a Russian.