1
2026 – S1 – ECS2604 – ASSESSMENT 3 – Q&A
QUIZ
Assessment 3
Started on Wednesday, 8 April 2026,
State Finished
Completed on Wednesday, 8 April 2026,
Time taken
Marks 20.00/20.00
Grade 100.00 out of 100.00
Question 1
According to the efficiency wage theory, higher wages would increase productivity because:
[I]: labour turnover would increase.
[II]: the workers’ rate of absenteeism may be higher.
[III]: the employers are discouraged from hiring better-quality workers.
a.
Only [I] and [II] are correct.
b.
Only [I] and [III] are correct.
c.
Only [II] and [III] are correct.
d.
All three statements are correct.
e.
All three statements are incorrect.
Feedback
Your answer is incorrect.
The correct answer is:
All three statements are incorrect.
, 2
2026 – S1 – ECS2604 – ASSESSMENT 3 – Q&A
Question 2
The spillover effect represents
a.
The increase in union wages due to an increase of labour demand in the unionised sector.
b.
The decline in union wages due to an oversupply of labour in the unionised sector.
c.
The decrease in non-union wages due a decrease of labour demand in the non-unionised
sector.
d.
The decrease in non-union wages due to the displaced union workers looking for work in the
non-unionised sector.
e.
The decrease in non-union wages due to the working-age population who were previously
inactive now seeking work in the non-unionised sector.
Feedback
Your answer is correct.
The correct answer is:
The decrease in non-union wages due to the displaced union workers looking for work in the
non-unionised sector.
Question 3
Using the information from the following table on a hypothetical firm, it can be concluded
that its labour productivity is equal to …… while capital productivity is equal to ……
Quantity of labour 100
Quantity of capital 50
Quantity of output 1 000
2026 – S1 – ECS2604 – ASSESSMENT 3 – Q&A
QUIZ
Assessment 3
Started on Wednesday, 8 April 2026,
State Finished
Completed on Wednesday, 8 April 2026,
Time taken
Marks 20.00/20.00
Grade 100.00 out of 100.00
Question 1
According to the efficiency wage theory, higher wages would increase productivity because:
[I]: labour turnover would increase.
[II]: the workers’ rate of absenteeism may be higher.
[III]: the employers are discouraged from hiring better-quality workers.
a.
Only [I] and [II] are correct.
b.
Only [I] and [III] are correct.
c.
Only [II] and [III] are correct.
d.
All three statements are correct.
e.
All three statements are incorrect.
Feedback
Your answer is incorrect.
The correct answer is:
All three statements are incorrect.
, 2
2026 – S1 – ECS2604 – ASSESSMENT 3 – Q&A
Question 2
The spillover effect represents
a.
The increase in union wages due to an increase of labour demand in the unionised sector.
b.
The decline in union wages due to an oversupply of labour in the unionised sector.
c.
The decrease in non-union wages due a decrease of labour demand in the non-unionised
sector.
d.
The decrease in non-union wages due to the displaced union workers looking for work in the
non-unionised sector.
e.
The decrease in non-union wages due to the working-age population who were previously
inactive now seeking work in the non-unionised sector.
Feedback
Your answer is correct.
The correct answer is:
The decrease in non-union wages due to the displaced union workers looking for work in the
non-unionised sector.
Question 3
Using the information from the following table on a hypothetical firm, it can be concluded
that its labour productivity is equal to …… while capital productivity is equal to ……
Quantity of labour 100
Quantity of capital 50
Quantity of output 1 000
