ASSESSMENT EXEMPLAR WITH GUIDE FOR INSTRUCTORS:
SUPPLY AND DEMAND
Topic:
☒ Microeconomics
☐ Macroeconomics
☐ Statistics/Econometrics
Core concepts:
Supply and demand, labour markets, market regulation, welfare analysis, reflection on value judgements and assumptions.
Learning domains: Type(s) of task (can be more than one)
☒ Knowledge
☒
☐
☒
☒
Application
Data analysis
Communication
Reflection
☒ Constructed response given stimulus material
(clip/narrative/etc.)
☐ Constructed response with no stimulus material
☐ Quantitative analysis
☒ Independent data sourcing ( At master’s level)
☐ Independent research (not data sourcing)
☒ Written presentation
☐ Oral presentation (Optional)
☐ Group collaboration
☐ Use of nominated maths/stats software (specify):
☐ Use of other technology (specify):
☐ Other (specify):
________________________________________
This task is for intermediate microeconomics but could be adapted for other levels of study. The focus is on labour economics. It addresses the factors influencing the demand and supply for labour and the impact of labour market regulation. In the bachelor level task, the initial section requires the manipulation of indifference curves and budget lines to analyse the impact on labour supply of changes in award wages and conditions. The second part of the assignment requires the presentation of two sides of the argument regarding labour market regulation. The final question requires reflection on how preconceived values and opinions may cloud the ability for objective analysis.
Bachelors level task
Individual written assignment Approx. 2000 words
In March 2015, an agreement was made in South Australia between the Shop Distributive and Allied
Employees’ Association and Business SA that substantially reduced penalty rates for weekend work in return for an increase in base pay and new rights to refuse shifts. a) Assuming you work on weekends in the hospitality industry in South Australia, consider the possible impact of this decision on your willingness to work on weekends and during normal working hours. In your analysis use indifference curves and budget lines and assume you are a utility maximising worker. Use separate diagrams for weekends and
normal working hours and explain the assumptions you have made in your analysis. [ KB1 ,
AB1 ]
b) Explain how assumptions about the wage elasticity of both labour supply and labour
demand will influence the outcome of this agreement on the hospitality industry. [ KB1 ]
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At a more general level in Australia, the Fair Work Commission is responsible for the setting of award pay rates and conditions with the aim of working towards cooperative and productive workplaces.
These awards include minimum wages and conditions. c) Assume you have been employed by the Australian Chamber of Commerce and Industry to prepare a case, to be submitted to the Commission, for a reduction in the minimum wage for Australian workers. Outline your case illustrating the impact for employers, employees and society in general which the reduction in the minimum wage may have on labour
market outcomes. [KB1 , AB2 , CB1 ]
d) Assume you have been employed by the Australian Council of Trade Unions to prepare a case, to be submitted to the Commission, against a reduction in the minimum wage for
Australian workers. Outline your case, illustrating the impact for employers, employees and society in general which the reduction in the minimum wage may have on labour market
outcomes. [ KB1 , AB2 , CB1 ]
e) Discuss which of the above arguments you found easier to present and whether this was
influenced by your underlying values or preconceived opinions. [ RB1 ]
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Masters level task
In March 2015, an agreement was made in South Australia between the Shop Distributive and Allied
Employees’ Association and Business SA that substantially reduced penalty rates for weekend work in return for an increase in base pay and new rights to refuse shifts. a) Assuming you are an employer in the hospitality industry in South Australia, consider the possible impact of this decision on your business. In your analysis, explain how assumptions about the wage elasticity of both labour supply and labour demand will
influence the outcome of this agreement on the hospitality industry. [ KM1 , AM1 ]
At a more general level in Australia, the Fair Work Commission is responsible for the setting of award pay rates and conditions with the aim of working towards cooperative and productive workplaces.
These awards include minimum wages and conditions. b) Assume you have been employed by the Australian Chamber of Commerce and Industry to prepare a case, to be submitted to the Commission, for a reduction in the minimum wage for
Australian workers. i) Outline your case illustrating the impact for employers, employees and society in general which the reduction in the minimum wage may have on labour market
outcomes. [ KM1 , AM2 , CM1 ]
ii) In your analysis, include international comparison of minimum wages and
unemployment outcomes in at least two other OECD countries. [ AM2 ]
c) Assume you have been employed by the Australian Council of Trade Unions to prepare a case, to be submitted to the Commission, against a reduction in the minimum wage for
Australian workers. i) Outline your case, illustrating the impact for employers, employees and society in general which the reduction in the minimum wage may have on labour market
outcomes. [ KM1 , AM2 , CM1 ]
ii) In your analysis, include international comparison of minimum wages and
unemployment outcomes in at least two other OECD countries. [ AM2 ]
d) Discuss which of the above arguments you found easier to present and whether this was
influenced by your underlying values or preconceived opinions. [ RM1 ]
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Advice to assessors
The level of guidance and leading of students in the first part of this task could be expanded depending on the level at which the task is set. As presented the bachelor
’s level task has requested students present theoretical arguments, however this could be expanded to require empirical data collection to support their arguments. A panel debate could also be conducted as part of this assessment task.
The focus in the final part of the task on reflection on preconceived positions and the linking of this question to the reflection learning standard is an important part of the task in encouraging students to reflect on how previously held values and judgements can influence economic analysis and policy. If a panel debate is used, this could be achieved by asking students to reflect on their initial preference regarding which side of the debate they would choose to present and whether their opinions changed after the debate had been conducted.
The master’s level task requires broader reflection on Australia’s minimum wage setting structure through international comparisons of labour market regulation and outcomes.
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Learning domain
Learning outcomes
Bachelor Degree Masters Degree
Knowledge
Application
KB1 Bachelor graduates will be able to identify, coherently explain and synthesise core economic concepts
Bachelor graduates will be able to:
AB1 • frame problems in terms of core economic concepts and principles
AB2 • apply economic reasoning and analytical skills, in order to make informed judgments and decisions
KM1 Masters graduates will be able to identify, coherently explain and synthesise core and advanced economic concepts , including recent developments in the discipline
Masters graduates will be able to:
AM1 • frame and critically analyse problems in terms of core and advanced economic concepts and principles
AM2 • apply advanced economic reasoning and analytical skills, including quantitative techniques where appropriate, in order to make informed judgments and decisions
AM3 • p lan and execute a research-based project
Data analysis Bachelor graduates will be:
DB1 • able to use economic data to address typical problems faced by economists
DB2 • aware of, and able to implement, basic empirical techniques and interpret the results
Communication CB1 Bachelor graduates will be able to present a clear and coherent exposition of economic knowledge, ideas and empirical evidence both orally and in writing, individually or in collaborative contexts
Reflection Bachelor graduates will be able to reflect on:
RB1 • the nature and implications of assumptions and value judgments in economic analysis and policy
RB2 • interactions between economic thinking and economic events, both historical and contemporary
RB3 • the responsibilities of economists and their role in society
Masters graduates will be able to:
DM 1• select and apply an appropriate empirical method to address typical problems faced by economists
DM2 • critically evaluate the results
CM1 Masters graduates will be able to communicate complex ideas clearly and coherently, in written form and interactive oral form to expert and non-expert audiences, individually or in collaborative contexts
Masters graduates will be able to reflect on and evaluate:
RM 1• the nature and implications of assumptions and value judgments in economic analysis and policy
RM2 • interactions between economic thinking and economic events, both historical and contemporary
RM3 • the responsibilities of economists and their role in society
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