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Jacaranda Key Concepts In VCE Economics 1 Units 1 & 2

“c05TheChangingLabourMarket_PrintPDF” — 2022/6/3 — 13:15 — page 52 — #52

5.8 Section B: Extended response questions

Question 1

(3 marks)

a. Define the term, labour market. b. Explain why wages in the labour market sometimes rise more slowly than at other times.

(1 mark) (2 marks) (4 marks)

Before answering the questions that follow, examine Table 5.11 containing data for an economy.

20 million 1 million

Persons aged 15 years of age and over

25 million

Unemployed persons The underemployment rate

5.0 per cent

Showing your formula and basic working, calculate the size of the labour force. Showing your formula and basic working, calculate the unemployment rate. Showing your formula and basic working, calculate the underutilisation rate. Showing your formula and basic working, calculate the participation rate.

a. b. c. d.

Employed persons

TABLE 5.11 Data relating to a country’s labour force

Question 2

Question 3

(10 marks)

a. Contrast strong labour market conditions with weak labour market conditions. Examine Table 5.12 showing data for changes in Australia’s labour market conditions:

(1 mark) (1 mark) (1 mark) (1 mark)

(2 marks)

TABLE 5.12 Australia’s labour market indicators for March 2022 Monthly change (%)

Yearly change

Yearly change (%)

13 389 900

17 900

0.10%

338 300

2.60%

551 300

−12 100

−2.10%

−236 700

−30.00%

4.00%

−0.1 pts

−1.7 pts

6.60%

6.30%

−0.2 pts

−1.6 pts

66.40%

0.0 pts

0.1 pts

1,813 million

1,803 million

−10 million

−0.60%

−1 million

−0.10%

Mar-2022

Monthly change

Feb-2022

Employed people

13 372 000

Unemployed people

563 300

Unemployment rate

4.00%

Underemployment rate Participation rate

CO RR EC

Labour market indicator

Monthly hours worked in all jobs

Source: ABS, Labour force Australia, see https://www.abs.gov.au/statistics/labour/employment-and-unemployment/ labour-force-australia/latest-release.

b. Referring to the data in Table 5.12, describe the general change in labour market conditions over the period shown. c. Identify and outline two important factors that could explain the change in Australia’s unemployment rate over the period covered in the table. (2 marks) d. If the unemployment rate was to fall to 3 per cent, identify and explain one important problem that may arise. (2 marks) e. If Australia’s unemployment rate fell to 3 per cent and the underemployment rate also fell to 3 per cent, explain what policy actions would be required to prevent a deterioration in domestic economic conditions. (4 marks)

Jacaranda Key Concepts in VCE Economics Units 1 & 2 Twelfth Edition

Jacaranda Key Concepts In VCE Economics 1 Units 1 & 2

Articles inside

8.8 Review

8.7 The responses by economic agents to improve environmental sustainability

8.4 The reasons why environmental sustainability is of importance to Australia and globally

8.3 Measures of the environmental sustainability of economic activity

8.5 The economic factors influencing the extent of environmental sustainability

8.6 Different perspectives about the issue of environmental sustainability

8.2 Definition and general nature of environmental sustainability

8.1 Overview

7.8 Review

7.7 The Australian government’s response to address inequality in the distribution of income and wealth

7.5 Economic factors affecting income and wealth inequality in Australia

7.6 Different perspectives about the distribution of income and wealth

7.4 The reasons why the distribution of income and wealth is an important issue

7.3 Measures of Australia’s distribution of income and wealth

7.2 Definition, nature and direction of income and wealth

7.1 Overview

6.8 Review

6.7 Economic responses and government policies involving international trade

6.6 Different perspectives about the issue of international trade

6.5 The economic factors influencing international trade

6.4 The benefits of international trade for Australia and the global economy

6.3 Measurement of Australia’s international transactions

6.2 Definition, nature and direction of international trade

6.1 Overview

5.8 Review

5.7 The Australian government’s economic responses to address changes in the labour market

5.6 Different perspectives about the changing labour market

5.3 Measures of Australia’s changing labour market

5.5 The economic factors influencing changes in Australia’s labour market

5.2 Definition and nature of the labour market

5.1 Overview

4.16 Review

standards

4.13 The potential costs of economic growth

4.12 The potential benefits of economic growth

4.10 Aggregate supply — its meaning, importance and factors affecting its level and economic activity

4.11 The measurement of economic growth using changes in Gross Domestic Product (GDP

4.8 BACKGROUND KNOWLEDGE: Overview of factors that may affect Australia’s level of economic activity

4.9 Aggregate demand — its meaning, importance and factors affecting its level and economic activity

4.6 Types of economic indicators

4.5 The business cycle

4.4 The five-sector circular flow model

4.3 The meaning of material and non-material living standards

3.5 Review

3.4 The effectiveness of strategies used by businesses to influence consumer behaviour

3.1 Overview

3.3 The effectiveness of strategies used by government to influence consumer behaviour

2.10 Review

2.9 Researching a contemporary Australian or global market

2.8 How changes in relative prices and profits affect Australia’s resource allocation

equilibrium price and quantity

2.3 BACKGROUND KNOWLEDGE: How markets make key economic decisions — the big picture

2.4 The law of demand and movements along the demand curve

2.5 The law of supply and movements along the supply curve

2.2 The nature of perfectly competitive and other types of markets in an economy

2.1 Overview

1.9 Review

1.5 Decision making in different economic systems

1.4 Making economic decisions

1.3 The basic economic problem of relative scarcity

1.8 Governments and their role as economic agents

1.6 Consumers and their behaviour as economic agents

1.1 Overview

1.7 Businesses and their behaviour as economic agents

1.2 What is economics?