2025 - ECS2604 - ASSESSMENT 2 - QUESTIONS AND ANSWERS - SEMESTER 2

2025 – S1 – ECS2604 – ASSESSMENT 2 – Q&A



Assessment 2
Started on Wednesday, 2 April 2025,
State Finished
Completed on Wednesday, 2 April 2025,
Time taken
Grade 15.00 out of 15.00 (100%)


Question 1
The decline in the number of workers hired when a union obtains a wage increase
will be smallest when




a.
The demand for labour is elastic.

b.
The supply of labour is perfectly inelastic.

c.
The demand for labour is unitary elastic.

d.
The supply of labour is perfectly elastic.

e.
The demand for labour is inelastic.

Correct.

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Your answer is correct.

The correct answer is:
The demand for labour is inelastic.



Question 2

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,2025 – S1 – ECS2604 – ASSESSMENT 2 – Q&A


If one sector of the economy becomes unionised and there is a spillover effect, then




a.
Wages may either increase or decrease in the non-unionised sector.

b.
Wages will increase in the non-unionised sector.

Wages will decrease in the non-unionised sector.

c.
Wages will remain unchanged in the non-unionised sector.

d.
Wages will be higher in the non-unionised sector compared to the unionised sector.

e.
Wages will decrease in the non-unionised sector.

Feedback
Your answer is correct.

The correct answer is:
Wages will decrease in the non-unionised sector.



Question 3
Use the following figure to answer the question below:




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, 2025 – S1 – ECS2604 – ASSESSMENT 2 – Q&A




The superior worker effect would result in the wage of the ………. to ……. from W to
……

Unionised sector; increase; WU

Correct.

Unionised sector; decrease; WN

Non-unionised sector; decrease; WN




Non-unionised sector; increase; WT

Unionised sector; increase; WT

Feedback
Your answer is correct.

The correct answer is:
Unionised sector; increase; WU



Question 4
Which of the following is NOT an argument against minimum wages?




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