Jacaranda Key Concepts In VCE Economics 1 Units 1 & 2 by jacarandaaus

Jacaranda Key Concepts In VCE Economics 1 Units 1 & 2

“c07TheDistributionOfIncomeAndWealth_PrintPDF” — 2022/6/2 — 15:01 — page 60 — #60

Resources

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Digital documents Multiple choice answer grid (doc-37964) Multiple choice answers (doc-37965)

7.8 Section B: Extended response questions

Question 1 (2 marks)

Clearly define what is meant by the term the distribution of income. Outline the overall way income is distributed in Australia. (2 marks)

Question 2 (3 marks)

Use the approximate data for Mexican income from table 7.10, showing the percentage income shares by quintile, to neatly and accurately complete and fully label a Lorenz diagram that clearly shows the following: (3 marks) • the line of total equality • the actual Lorenz curve for Mexico • appropriate horizontal and vertical scales for the graph • the titles for the two axes • your estimate of the Gini coefficient for Mexico.

TABLE 7.10 The distribution of Mexico’s income by individual quintile

Mexico Non-cumulative share (%) of income

1 2 3 4 5

2.0 6.0 12.0 20.0 60.0

CO RR EC

Quintile

Question 3 (5 marks)

It has been said that the biggest single cause of inequality in wages among Australian workers in different occupations is the normal operation of the labour market.

a. Accurately explain how the operation of the labour market, and the conditions of demand and conditions of supply for each type of labour, account for why a typical factory worker receives less than $1000 per week while an experienced engineer frequently gains more than $5000 per week. (3 marks) b. Neatly complete and fully label a demand–supply diagram to show, hypothetically, how the free operation of the labour market causes inequality in weekly wages between these two occupations. (Note: Take care to realistically locate the positions of the various demand and supply lines for the two occupations, and carefully label all points and lines). (2 marks) Question 4 (3 marks)

List and briefly outline three important causes of typically low incomes received by many Indigenous Australians.

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

(3 marks)

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?