BEO6600 Business Economics

Questions

1 There was scepticism on how Mr Bill Shorten would fulfil his promise in increasing the minimum wage rate in Australia if he and his party had won the federal election.  Based on the economics theories and concepts learned in BEO6600, explain what way(s) would have been available to Mr Bill Shorten to seek an increase in the minimum wage rate.

2 Using a diagram, explain and illustrate the impact of a significant increase in the minimum wage rate on the Australian labour market.

3 Using separate diagram, explain and illustrate how a significant increase in the minimum wage rate could impact on:

Demand, supply, price and quantity for a normal good; and

Aggregate demand, aggregate supply and price level in the Australian economy.