Questions that weren't worth it. (1 Viewer)

[Sparcod]

A lot of the students and teachers complained that 'identify one cause of participation rate and two effects' question was only worth 3 marks.

What's the answer by the way?

 

[nickyroony]

Thank god it's only 3 marks. I bullshitted that one.

Basically said up turn in economic cycle = higher participation rate, short term rise in unemployment... and the last one i totally made up and I don't remember what I said.

 

[klaw]

What I wrote was that economic growth leads to an increased demand in labour to meet the increase in demand for goods and services. This in turn causes wages to rise, and thus the labour participation increases as the rise in income acts as a disincentive for the aged to retire early and encourages mothers to join the workforce. This then leads to an increase in total income of the economy, and thus the demand for imports rise and the CAD will worsen. Furthermore, if the rate of economic growth is less than the increase in productivity and size of the labour force, unemployment will decrease in accordance to Okun's law.

 

[Benmc]

I wrote something about a rise in part time work. Pushes up aggregate demand and reduces need for social welfare payments which can be spent else to encourage economic growth.

 

[TNguyen]

for causes i wrote higher wage growth therefore increasing supply of labour

effects i wrote: it in turn decreases wage due to demand and supply of labour and also increases short term umemployment forcing govt to increase expendiature on employment benefits.

 

[simonhorowitz]

basically i said that the increase in the participation rate was due to an increase in the average age of retirement. effects were increased economic growth as workers will contribute to the productive capacity of the economy for a longer period of time , which hence takes pressure of the governments transfer payments i.e. pension

 

[TNguyen]

lol u wrote the complete opposite to me.... but rise in participation doesnt mean rise in employment, it's actually the opposite. Just means more ppl willing to work but not actually in jobs

 

[shsshs]

cause in rising LFPR: i wrote better economic conditions, hidden unemployed/ discouraged workers are re-encouraged to seek jobs

effects: less hidden unemployed, rising equality of income/wealth, growth

 

[simonhorowitz]

lol u wrote the complete opposite to me.... but rise in participation doesnt mean rise in employment, it's actually the opposite. Just means more ppl willing to work but not actually in jobs

yer that is quite true but the people who are not classified in the paricipation rate are those who are not actively seeking work which includes pensioners. so if we reduce pensions or increase the average retiring age we are in actual fact increasing the participation rate.

there was a question 2001, 2002 (cant remember which) one almost identical and the markers guidelines identifies this as a possible cause

 

[tommymac123]

could u say that:
training and skills programs for secondary and tertiary students used in fiscal policy, has mean these ppeople are more able to seek work as they have greater skills hence increasing the participation rate. This participation rate increase leads to a short term increase in unemployment, and this short term increase in unemployment can further be a strain on economic growth. However, in the longer term it improves structural u/e, improving expenditure in economy, improving economic growth etc.

 

[yupgisonyun]

Well... i think it was alright for 3 marks...
it asked for a cause and two effects... and 1 mark for each...
sounds fair...
anyway i wrote
cause: increased economic activity creates positive job prospects...
effects: there is increase in capacity of supply hence more are able to work and theoretically it allows government the ability to expand more easily... Also, there will be decrease in wage, ceteris paribus, coz more people will have to compete for the limited amount of jobs.

 

[s2indie]

What I wrote was that economic growth leads to an increased demand in labour to meet the increase in demand for goods and services. This in turn causes wages to rise, and thus the labour participation increases as the rise in income acts as a disincentive for the aged to retire early and encourages mothers to join the workforce. This then leads to an increase in total income of the economy, and thus the demand for imports rise and the CAD will worsen. Furthermore, if the rate of economic growth is less than the increase in productivity and size of the labour force, unemployment will decrease in accordance to Okun's law.

I wrote the same thing.