ECON201 Economic Analysis of Minimum Wage Increase

ASSIGNME REPORT

ASSESSMENT OVERVIEW

This assessment requires you to research into real world situation and apply key economic concepts, principles and theories taught in Week 3 to 6 to critically analysis and interpret economic information and data for making informed judgements and decisions.

In addition, this assignment requires clear communication of your groups analytical exposition grounded on economic reasoning that incorporates appropriate economic terminologies, diagrams and data relevant to the context of these cases.

PURPOSE

The purpose of this assessment task is to:

Assess your groups collaborative integration and application of knowledge and learning in identifying, analysing and addressing economic problems/issues based on economic concepts, principles and theories.

Assess the collaborative output of your group in constructively building upon and synthesizing the contributions of members and articulating ideas and analysis on the ground of economic reasoning.

The unit learning outcomes assessed are:

LO 2:?Assess and analyse business problems by applying economic reasoning and analytical skills to make informed judgements and decisions;

LO 4:?Articulate complex economic ideas clearly and coherently, in written and oral form to expert and non-expert audiences;

LO 5:?Critically reflect and evaluate the nature and implications of assumptions and value judgements in economic analysis and policy.

ASSESSMENT

MINIMUM WAGE RATE

Before Fair Work Commission in Australia announced its formal decision to increase Australian minimum wage by 5.2 percent, the following prominent politician and peak bodies voiced their opinion on their desired increase for Australias minimum wage rate:

• In April 2022, the Australian Council of Trade Unions (ACTU) urged for an increase of 5.5 percent for minimum wage rate.


• In May 2022, the Australian Chamber of Commerce and Industry (ACCI) proposed an increase of 3 percent for minimum wage rate.


• In May 2022, current Prime Minister Anthony Albanese said during the federal election campaign he wanted the minimum wage increase to be 5.1 percent.

On 15 June 2022, Fair Work Commission in Australia announced its formal decision to increase Australian minimum wage by 5.2 percent.

Questions

1.1 Using a diagram, explain and illustrate the economic impact of this increase of 5.2% in the minimum wage rate on the Australian labour market. (Note: Your group must draw a diagram that shows the economic impact of this rate increase on the demand and supply curves of labour in Australia).

1.2 Assuming Australias inflation in 2022 rose by 5.1%, evaluate and explain the impact on real wages if Fair Work Commission made a different decision in 2022 and implement an increase in minimum wage rate of:

(i) 3 percent

(ii) 5.1 percent

(iii) 5.5 percent

Reference:

Evans, J. 2022. Australian minimum wage increased by 5.2 per cent in Fair Work Commission decision. ABC news, 15 June, viewed 13 July 2022, <https://www.abc.net.au/news/2022-06-15/minimum-wage-pay-increased-fair-work/101153178>

Maguire, D. 2022. National minimum wage to rise in July, but inflation rate leads to cut in real wages for workers on awards. ABC news, 15 June, viewed 7 February 2023, <https://www.abc.net.au/news/2022-06-15/fair-work-commission-rises-national-minimum-wage-award-rates/101153806>

INSTRUCTIONS

In answering all the questions and sub-questions in this assignment, please note the following requirements:

1. Use economic principles and models introduced in this unit in your groups analysis, explanation and discussion.Please note that the written presentation should address the assignment questions, showing understanding and application of the key concepts and theories in the learning program. Be concise and to the point.Marks will not be awarded for assignment that focuses heavily on background and/or event description, without any economic analysis undertaken.


2. Answers must be typed.Use graphs where required or appropriateto help illustrate and support arguments. These graphs may be drawn by hand but should be clearly labelled. Any graph lifted from other sources will not be accepted.


3. UseTimesNewRoman,size12,forthetext.Numberthepages.
   


4. Conduct research only to understand theeconomiccontext of this assignment to facilitate analysis of the events in each question.


5. Cite all reference sources(such as academic journals articles, books, book chapters) to acknowledge authors whose words or ideas you incorporated into your assignment. VU deals with plagiarism according to theAcademic Integrity and Preventing Plagiarism Policyopens in new window


6. All sources cited must be included in the Reference section.Your groupmust use theHarvard Referencing Style. Refer tohttps://libraryguides.vu.edu.au/harvardopens in new windowfor a VU Library guide on Harvard Referencing.


7. Thisassignment will be subjected to originality check through plagiarism software in VU Collaborate.Please note that plagiarism will not be tolerated.VU deals with plagiarism according to theAcademic Integrity and Preventing Plagiarism Policyopens in new window.


8. Clearly identify each question/sub-questionyour group is answering in this assignment.

ASSESSMENT CRITERIA

The following levels of criteria will be used to grade this assessment task:

• Criterion 1:Research


• Criterion 2:Knowledge synthesis and integration


• Criterion 3:Identify, apply & explain economic concepts, theories &/or models in the context of the case


• Criterion 4:Discussion & Analysis


• Criterion 5: Data visualisation(such as use of diagrams and graphs)


• Criterion 6:Economic terminologies

Criterion 7:Writing & Presentation