QUESTION 96 (20 marks)
Use all sources to evaluate an automation grant alone against an automation grant combined with worker retraining. Recommend a package using productivity and full employment.
Source 1
Vacancies and displacement are cumulative counts; vacancies are not automatically filled jobs.
Source 2
The grant costs $1 billion. Adding training costs $0.4 billion and is forecast to qualify 9000 displaced workers by Year 4.
Source 3
Displaced workers are concentrated in regional routine occupations; many cannot relocate. Specialist vacancies require accredited qualifications.
Source 4
Productivity gains can reduce prices and improve export competitiveness, but their magnitude depends on adoption and effective use of the technology.
Practice marking scheme
Answer
The combined package better links potential productivity gains to employment, subject to targeted access and delivery checks.
Working
Source 1 forecasts stronger output per hour, but Year 1 has 8000 displaced workers against only 3000 specialist vacancies. These are different skills, so subtracting counts is not a net-employment estimate. By Year 4, 15 000 vacancies offer potential absorption, but training and matching are necessary. The extra $0.4 billion buys a forecast 9000 qualified workers (Source 2), approximately $44 444 per qualification; that is not a guaranteed cost per additional job. Source 3 supports regional, accessible training rather than relying on relocation. The grant can raise capacity and competitiveness (Source 4), but grant-only gains may be unequally distributed and unfilled vacancies can constrain them. Prefer a staged grant with training tied to recognised skills, retention and placement evidence. Fiscal costs and uncertain adoption still matter; preserve support for people whose jobs disappear before training is complete.
Marking criteria
- Distinguishes productivity, displacement and unfilled vacancies. [3 marks]
- Uses both transition years and the 9000 qualification projection. [3 marks]
- Calculates approximately $44 444 per qualification with the correct interpretation. [3 marks]
- Evaluates skills/region barriers and macroeconomic benefits. [4 marks]
- Justifies a combined package using both criteria and timing. [5 marks]
- Recognises additionality/adoption or fiscal uncertainty. [2 marks]
Practice question aligned to the current QCAA syllabus; review the worked solution and marking criteria.
View the QCAA syllabusCompare your working with the guide above.