VCE Economics — Unit 4 AOS 2
Labour Market Reform — Flashcards & Quiz
Labour market reform refers to supply-side policies that improve the functioning, flexibility and productivity of the labour market. VCE Economics Unit 4 AOS 2 expects you to evaluate specific reforms (enterprise bargaining, skilled migration, training subsidies) for their impact on aggregate supply, unemployment, and living standards.
Sample Flashcards
Q1: How do labour market reforms affect aggregate supply?
Labour market reforms increase flexibility, reduce structural unemployment, and improve productivity. Key reforms: enterprise bargaining, reducing hiring/firing barriers, workplace flexibility, retraining programs, and industrial relations reform.
Q2: What is enterprise bargaining and how does it differ from the award system?
Enterprise bargaining involves direct negotiation at the firm level to create an enterprise agreement on wages and conditions. The award system provides minimum industry-wide wages set by the Fair Work Commission. Enterprise agreements can offer above-award wages tied to productivity.
Sample Quiz Questions
Q1: Enterprise bargaining links wage increases directly to firm-level productivity.
Answer: TRUE
Enterprise bargaining negotiates wages at the firm level, allowing wages to be linked to workplace productivity gains.
Q2: The Fair Work Commission sets the national minimum wage in Australia.
Answer: TRUE
The Fair Work Commission conducts an annual minimum wage review and sets the national minimum wage.
Related Concepts
Last updated: March 2026 · 2 flashcards · 2 quiz questions