ECS2604 Assignment 4 Semester 2 - DUE 8 November 2024

ECS2604 Assessment 4 (COMPLETE QUESTIONS & ANSWERS) Semester 2 2024 - DUE 8 November 2024 ;100 % TRUSTED workings, Expert Solved, Explanations and Solutions. For assistance call or W.h.a.t.s.a.p.p us on ...(.+.2.5.4.7.7.9.5.4.0.1.3.2)........... Question 1 [20] 1. When the labour demand curve shifts rightwards, at the new equilibrium, (a) there is no change in wage. (b) the wage decreases. (c) the wage increases. (d) the labour supply curve also shifts rightwards. (e) the labour supply curve shifts leftwards. 2. The hourly wage of Thandi decreases from R150 to R100. What will happen to her budget line? (a) Gets steeper. (b) Shifts up without changing its slope. (c) Shifts downwards. (d) Becomes flatter. (e) Remains the same 3. Assume company XYZ increases retirement benefits for its employees, what is the effect on the budget line? (a) Shift down the budget line without affecting its slope. (b) Shift up the budget line. (c) Shift down the budget line. (d) Remains the same. (e) Steepen the budget line, affecting its slope. 4. Assuming that for Mimi the substitution effect is stronger than the income effect, which of the following applies to her? (a) She will work more hours and her labour supply will increase. (b) She will work few hours and her labour supply will decrease. (c) She will work few hours and enjoy more leisure. (d) She will be indifferent between putting in more hours or enjoying more leisure time. (e) The information provided is not enough to determine the effect. ECS2604/2/2024 5. Assume E makes 6500 garments each week and the total number of employees amount to 1500. Due to the outbreak of COVID-19, there is a fall in demand for garments as "'none-essential" businesses are closed during the lockdown season. Mashudu sees it fit to cut down their working hours to 70%. What is labour productivity? (a) 4.33 (b) 4.34 (c) 3.03 (d) 0.33 (e) 0.25 6. As a result of being laid off, Jayden decides to become a street vendor. Labour supply is expected to? (a) Decrease. (b) Increase. (c) Remain the same. (d) Indeterminable. (e) Increase then decrease. 7. The participation rate in the labour force is not positively affected by (a) Increases in demand and wages of women due to the decrease in discriminatory laws. (b) The decrease in the population’s willingness to attain education. (c) The decrease in birth-rates. (d) The increase in social welfare for women. (e) None of the options. ECS2604/2/2024 8. Use the information in the following table to calculate the vacancy rate: Vacancies Employment (a) 3.33 % (b) 13.33 % (c) 16.66 % (d) 20.00 % (e) 50.00 % 9. Refer to the table below and calculate utility. R1 change of income 2 utils 1 hour change of leisure 40 utils (a) MUY = -120, MUL=120, ∆U = -0 (b) MUY = -120, MUL= 120 (c) MUY = 120, MUL= -120 (d) MUY = 120, MUL=120, ∆U = 2 (e) MUY = -120, MUL=120, ∆U = 0 10. Occupational discrimination (a) is keeping one group in lower-paying unskilled jobs although their potential productivity is equal to that of those who have access to higher-paying skilled jobs. (b) is an example of before-the-market discrimination. (c) is the desire of those in one group to work in unskilled jobs rather than those in another group. (d) takes place when medical doctors are paid less than cashiers. (e) occurs when someone is denied opportunities in respect of education and training. Question 2 [6] Assume a very small economy compromised of the following people: • The economy consists of the population that has an age group of 16 years and older. • Sharon and Bridget work as receptionists in the municipality of Limpopo • Anna has left her job to become a full-time housewife. ECS2604/2/2024 • Sophie has not had work for quite a while, and occasionally flips through job ads to see what kinds of jobs are available. • Glenda does not have work but is actively sending out his resume to employers while Thabang prefers to make money from gambling. • Muano has just graduated from college and is starting his job search. • Pfarelo lost his job due to retrenchment and has been experiencing depression. 2.1 The strict labour force participation rate in this economy would be? (3) 2.2 What is the expanded rate of unemployment? (3) Question 3 [10] 3.1 According to the theory of demand, discuss and illustrate by means of a graph the implication of the amendment of Compensation for Occupational Injuries and Diseases Act no 61 of 1997? Question 4 [10] 4.1 Suppose Mbali owns a bakery, Sweet treats. In this bakery Mbali assigns Irene, Lethabo and Angelina as waitrons and assigns Thabo, Peter, and Thato to bake and clean the dishes. According to theory, would this be indicative of discrimination and why? (4) 4.2 Suppose in Basotho farm, black and white workers are complements in that the marginal product of whites increases when more blacks are hired. Suppose also that white workers do not like working alongside black workers. As a labour economist, what advice would you give to Basotho farm to do? (6) Question 5 [14] 5.1 Depending on the elasticity of labour demand, what is the effect of an increase in the minimum wage on unemployment? How would an increase in the minimum wage affect unemployment in the fast-food industry versus the lawn-care/landscaping industry? (6) ECS2604/2/2024 5.2 For public school teachers and nurses, why should labour demand be relatively higher according to Marshall's rule of inelastic demand? Explain. (6) 5.3 If a competitive firm experiences a technology shock that increases its output by 200 units per hour at every level of employment, what happens to its employment? (2) [60 marks]