Most wage increases occur through a demand-supply negotiation mechanism between unions and employers. These are called enterprise negotiations and usually provide larger income increases than awards

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10.2 Trends in the Distribution of Income from
Work

• Most wage increases occur through a demand-supply
  negotiation mechanism between unions and
  employers. These are called enterprise
  negotiations and usually provide larger income
  increases than awards
• There are advantages and disadvantages of using
  enterprise negotiations to determine wage
  outcomes

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• There is an inequality in the distribution of
  income and the gap is increasing. This has both
  positive and negative effects
• Changes in the distribution of labour between
  occupations and industries gives an indication of
  changes taking place in the economy. These
  changes can be cyclical (referring to changes in
  the overall level of demand and economic growth)
  or structural (changes due to technology, demand
  or production) in nature

Table 10.7 (pg 147 of textbook) Australian
Income Distribution (1999-2000)
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10.3 Non-Wage Outcomes

• In addition to ordinary and overtime payments,
  many workers also receive non-wage outcomes.
  These come in many forms and vary in each
  workplace

10.4 The Cost and Benefits of Inequitable
Distribution of Income

• Inequality in the distribution of income can have
  positive and negative effects on both the economy
  and society

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• 11. Most wage increases occur through
• Awards
• Unions
• Enterprise agreements (demand and supply
  negotiations)
• None of the above

• 12. Which of the following is not an advantage of
  using enterprise agreements to determine wage
  outcomes?
• It makes the labour market more flexible and more
  adaptable to changing conditions
• It generally produces a larger income increase
  than awards
• It can increase the gap between the rich and the
  poor
• It allows the employer to change work
  arrangements quickly

•  
• 13. 50 of all income in Australia is earned by
• The government
• 50 of the population
• The richest 20 of the labour force
• The richest 40 of the labour force

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• 14. Which of the following statements are false
• There is no gap between incomes within the same
  occupation and workers with equal skills and
  qualification
• There is an increasing gap in income between
  different occupations and groups
• High rates of union membership create more
  similar wage outcomes in an occupation
• There is a decentralisation of income
  determination in Australia

• 15. Cyclical changes
• Refer to changes in the overall level of demand
  and economic growth
• Are caused by changes in patterns of demand,
  production and technology
• Occur because higher rates of union membership
  create a larger inequality in income distribution
• All of the above

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• 16. Structural changes in Australias economy
• Occur due to changes in patterns of demand,
  production and technology
• Are reflected by changing patterns of employment
  and wage levels in Australia
• Have a long-term impact on the level of
  employment in various industries
• All of the above

• 17. Non-wage outcomes do not include
• Bonuses rewarded for an individuals work
  performance
• Salaries
• Overtime payments
• Sick leave

• 18. Which of the following is an economic benefit
  of inequality in income distribution?
• Consumption of goods and services are reduced
• Entrepreneurs are less willing take risks
• Workers are encouraged to work more hours
• Unequal distribution of income preserves unequal
  opportunity for better education

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• 19. Social benefits of inequality
• Are unlimited
• Do not exist there arent any
• Reflect an individuals productivity accurately
• May promote a desirable social structure by
  leading people to believe that the more
  productive a worker is, the wealthier they will
  become

• 20. Social costs of inequality in the
  distribution of income include
• Problems associated with class divisions eg.
  Tensions and disputes caused by workers trying to
  lift their level of income
• Poverty and the cycles of low income, reduced
  opportunity and increased social problems that
  result from it
• None of the above
• A B