8.1 Overview

Resourceseses

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 Quintile Mexico Non-cumulative share (%) of income 1 2.0 6.0 3 12.0 4 20.0 5 60.0 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. (3 marks) 2 UNCORRECTED PAGE PROOFS

Explain how unemployment and/or part-time work can cause income inequality and low living standards in Australia. (2 marks)

Question 6 (6 marks)

a. The Australian government pursues the goal of an equitable distribution of income. Accurately define what is meant by this goal. (2 marks) b. Describe the main features of Australia’s personal income (PAYG) tax system and explain how this tax helps to redistribute personal incomes more evenly than otherwise, thereby promoting greater equity. (2 marks) c. Other than the personal income tax system, identify and outline one other important federal government policy that helps to redistribute personal incomes more evenly. (2 marks)

Fully worked solutions and sample responses are available in your digital formats.

Hey Teachers! Create custom assignments for this topic

Create and assign unique tests and exams Access quarantined tests and assessments

Track your students results Find all this and MORE in jacPLUS UNCORRECTED PAGE PROOFS