help with mc questions (1 Viewer)

[aoc]

question 17 2014 hsc
Australia has a lower minimum wage for youth than for adults.
Which of the following is most likely to cause an increase in youth unemployment?
ANS: increase in minimum wage for youth and unchanged minimum wage for adults
i thought it would be increase in minimum wage for youth and adults since if the wage of adults increased as well firms are more inclined to retain adults since they have more experience and not hire youth?

The Reserve Bank of Australia purchases Commonwealth Government Securities in
order to alter the cash rate.
This depreciates cash rate and increases aus GDP. Can someone please explain how

 

[Esse]

Q17) If the minimum wage of youth increase, there would be an increase in unemployment cause firms wouldn't want to spend extra on wages. Therefore C or D
If the minimum wage of adults increased, they would get rid of adults cause they're too expensive, and look for alternatives (i.e. youth). Therefore it is not C, but D

 

[Esse]

An increase in minimum wage doesn't necessarily mean an increase in adult experience/working skills

 

[Esse]

When the RBA purchases securities from a bank, it pays for them by depositing money in banks Exchange Settlement accounts. This increases the supply of settlement funds, putting downward pressure on the cash rate. This reduction in the cash rate lowers the cost of borrowing for banks in the short term money market, and competition between banks cause them to pass cost savings onto consumers through lowered interest rates. Due to the lowered interest rates, there is increase consumer confidence within the economy as they are more inclined to borrow due to low interest repayments, allowing them to purchase more goods and services which increases Aus GDP

 

[aoc]

Thanks