ECS2604 EXAM PACK 2023

7.5 Assignments 7.5.1 First semester assignments SEMESTER 1 ASSIGNMENT 01/2018 CLOSING DATE: 02 March 2018 UNIQUE NUMBER: WEIGHT: 40% of semester mark TL501: Learning units 1 – 4 Prescribed Book: Chapters 1 – 4 This assignment contributes 40% towards your semester mark. Please ensure that this assignment reaches the University before the due date. Answer all the questions on a mark-reading sheet or on myUnisa. IMPORTANT! The first ten multiple choice questions of this assignment are not of an academic nature and do not have a correct or incorrect answer. These ten questions, therefore, do not count any marks. They are designed to obtain information required to compile a student profile for this module. Your kind cooperation is requested, as the information assists the department in its ongoing efforts to ensure quality education. Remember to use only an HB pencil if you answer the assignment on a markreading sheet. 1.1 Which one of the following is most true regarding your registration for ECS2604? [1] This is my first registration. [2] This is my second registration. [3] This is my third registration. [4] This is my fourth registration. [5] I have been registered more than four times. 1.2 In Grade 12* [1] I did Mathematics/Mathematical Literacy and passed it. [2] I did not do Mathematics/Mathematical Literacy. [3] I did Economics and passed it. [4] I did not do Economics. * Students who do not have a South African Grade 12 should choose the option they think are most relevant to them. ECS2604/101/3/2018 17 1.3 How long after you registered did you receive your study material? [1] In less than a week. [2] Between one and two weeks. [3] Between two and three weeks. [4] More than three weeks [5] To date I still have not received anything. 1.4 Which one of the following best describes your access to SMS-messages? [1] I can receive SMS-messages on my own cellphone. [2] I can receive SMS-messages on the cellphone of someone who lives with me. [3] I can receive SMS-messages on the cellphone of someone I know but who does not live with me. [4] I cannot receive SMS-messages at all. 1.5 Which one of the following applies to you? [1] I have access to internet. [2] I have access to e-mail. [3] I have access to both internet and e-mail. [4] I do not have access to either internet or e-mail. 1.6 The section(s) of Tutorial Letter 501 that I had to study to complete this assignment [1] helped me to work through the textbook systematically. [2] did not help me to understand the study material in the textbook better. [3] was totally irrelevant to the assignment questions. [4] I did not use Tutorial Letter 501 at all although I have one. [5] I have not received a Tutorial Letter 501. 1.7 Which one of the following describes your situation best? [1] I worked through the prescribed study material (chapters 1 – 4) before attempting this assignment. [2] I quickly glanced through the prescribed study material before attempting this assignment. [3] I did not study the prescribed study material before attempting the assignment, but looked for the answers in the study material. [4] I could answer the questions without referring to the study material. [5] I just chose my answers randomly. 18 1.8 Concerning the ECS2604 website on myUnisa [1] I am not aware of this website. [2] I am aware of this website, but have not visited it. [3] I visited this website once but did not find it helpful. [4] I visit this website regularly and find it helpful. [5] I visit this website only when I receive an announcement that there is something new. 1.9 Do you find the e-tutor system for ECS2604 helpful? [1] Yes. [2] No, I can cope on my own. [3] I have not been grouped with an e-tutor. [4] I prefer to contact a lecturer. [5] No, for any other reason. 1.10 Do you find the separate Learning Units under the "Learning Units" folder useful, or did you make use of the printed Tutorial Letter 501 which you received (and which is also available under the "Additional Resources" folder)? [1] I did not make use of the separate Learning Units as it is too time consuming. [2] I made use of the printed Tutorial Letter 501 which I received as part of my study package. [3] I made use of Tutorial Letter 501 on myUnisa while I waited for the printed version to be delivered. [4] I made use of Tutorial Letter 501 on myUnisa and printed it myself, as I received my printed study material too late. 1.11 Which of the following statements is/are true? a. A unique characteristic of the labour market is that the skills level of an individual can change over time. b. The employer only buys the services of a worker, but not the worker himself/herself. These services and the worker can be physically separated. c. A labour market should contribute to the objective of inequality. [1] a b c [2] a b [3] b c [4] Only a [5] Not [1], [2], [3] or [4] ECS2604/101/3/2018 19 Question 1.12 is based on the following diagram which represents a graphical analysis of the labour market under perfect competition. 1.12 Which of the following statements is/are true? a. The number of workers supplied is not the same as the supply of labour and the number of workers demanded is not the same as the demand for labour. b. Equilibrium in the labour market is at a wage rate of R500 where the number of workers supplied is equal to the number of workers demanded. c. Equilibrium in the labour market is at a wage rate of R500 where supply equals demand. d. If the wage rate is R200 per week, employers will demand 80 workers but only 20 workers will supply their labour services. e. The labour demand curve and labour supply curve will shift to the left or to the right as a result of the influence of external factors, while an increase in the wage rate from R500 to R800 will cause a movement along the demand and the supply curve. [1] a b d e [2] b c d [3] a e [4] b c e [5] Not [1], [2], [3] or [4] 20 1.13 Which of the following is true? The total labour force or the economically active population (EAP) consists of [1] only self-employed persons and employers. [2] workers in the formal and informal sectors. [3] self-employed and unemployed persons. [4] only unemployed persons. [5] workers in the formal as well as the informal sectors, self-employed persons and employers, as well as unemployed persons. 1.14 Which of the following is NOT true? [1] The total fertility rate (TFR) is the average number of children born alive to a woman in her reproductive years (15 to 49). [2] Skilled migration inflows are not beneficial to the receiving country because these immigrants normally contribute very little to taxes. [3] A discouraged work-seeker is a person who is unemployed and wants to work, but does not actively seek employment. [4] The indifference curve of a workaholic is flat (inelastic), while that of a leisure lover is steep (elastic). [5] [2] and [4]. 1.15 Which of the following statements is/are true? a. The negative slope of the indifference curve indicates that as leisure time increases, income reduces owing to fewer hours at work. b. An indifference curve is convex to the origin. c. A large number of indifference curves form an indifference map. d. The market supply curve of labour is backward-bending. e. As wages increase, the individual will substitute more work for leisure. This is called the income effect. [1] b c d [2] a b c e [3] d e [4] a b c [5] Not [1], [2], [3] or [4] ECS2604/101/3/2018 21 1.16 Which of the following is NOT true? [1] The long-run demand curve for labour is more elastic than the short-run demand curve for labour. [2] In recent years a redistribution of jobs from rural to urban areas took place in South Africa. [3] The population census is the best measure of employment in South Africa. [4] Workers in the secondary segment of the labour market normally cannot get access to the primary segment of the labour market. [5] Examples of non-wage labour costs are worker benefits such as housing and transport allowances. 1.17 Which of the following statements is/are true? a. The employment elasticity of economic growth indicates the sensitivity of economic growth to changes in employment. b. The labour absorption capacity of the economy can be defined as the percentage of new entrants to the labour force that find a job in the formal sector of the economy. c. Some factors that influence the demand for labour in South Africa are the rate and nature of economic growth, trade liberalisation, labour legislation and the impact of unions and bargaining councils on labour costs. [1] a b c [2] b c [3] a b [4] a c [5] Not [1], [2], [3] or [4] 1.18 Which of the following statements is/are true? a. The informal sector does not generally solve the problem of poverty and low standards of living. b. A characteristic of the informal sector is that it always makes use of highly specialised capital-intensive technology. c. Informal sector employment cannot be regarded as a substitute for formal employment. d. Informal sector businesses are mostly legal and registered. [1] a c [2] c d [3] b c [4] a b d [5] Not [1], [2], [3] or [4] 22 1.19 Which of the following is NOT true? [1] The marginal product of labour refers to the change in production associated with employing one additional employee. [2] A firm's short-run demand curve for labour can be indicated by the downward sloping MRP curve. [3] The law of diminishing marginal product is used to derive the long-run demand curve for labour. [4] An isoquant indicates the different combinations of capital and labour that can be used to produce the same level of production (output). [5] The cost minimising position for an employer in the long run is at that point where the isocost curve is tangent (just touches) to an isoquant. 1.20 Which of the following statements is/are true? a. The dual labour market is characterised by two distinct non-competing markets, namely the primary and the secondary labour markets. b. A monopsonistic labour market is characterised by a large number of employers. c. A non-discriminating monopsonist pays all his workers the same wage for doing the same job. d. Equilibrium for a non-discriminating monopsonist occurs where MC = MRP. e. The supply curve lies above the marginal cost curve for a perfectly discriminating monopsonist. [1] a b c [2] d e [3] b d [4] c e [5] Not [1], [2], [3] or [4] ECS2604/101/3/2018 23 SEMESTER 1 ASSIGNMENT 02/2018 CLOSING DATE: 06 April 2018 UNIQUE NUMBER: WEIGHT: 60% of semester mark TL501: Learning units 5 – 8 Prescribed Book: Chapters 5 – 8 This assignment contributes 60% towards your semester mark. Please ensure that this assignment reaches the University before the due date. Answer all the questions on a mark-reading sheet or on myUnisa. Remember to use only an HB pencil if you answer the assignment on a markreading sheet. 2.1 Which of the following statements is/are true? a. Employers and employees have equal bargaining power. b. If the demand is very elastic, any wage increase leading to a price increase will increase the demand for that product and the employer will be more resistant to wage demands. c. The employer's ability to deal with a strike can determine the outcome of collective bargaining. d. Union wage increases may accelerate the search for cost-reducing and productivity increasing technologies. e. The impact of a wage increase in a unionised sector can have a spillover and threat effect on the non-unionised sector. [1] b c d [2] c d e [3] b c [4] a c d [5] Not [1], [2], [3] or [4] 2.2 Which of the following statements is/are true? a. Employers who are part of a bargaining council can fix wages among them; therefore they can be regarded as a form of monopsony. b. Bargaining councils ensure that atypical employees are always fully covered by collectively agreed wages and conditions of employment. c. Bargaining councils play a key role in the provision of pension and provident benefits. d. Bargaining councils ensure perfect flexibility in the labour market. 24 [1] b c d [2] c d [3] a c [4] b d [5] Not [1], [2], [3] or [4] 2.3 Which of the following statements is/are true? a. Minimum wages are instituted by government in those industries where wages cannot be regulated effectively by collective bargaining. b. Minimum wages are also instituted by government in sectors where wages are exceptionally high. c. The costs of minimum wages can be passed on to consumers and it can therefore contribute to inflation. d. Minimum wages will enable workers to enjoy a certain minimum standard of living. e. The implementation of minimum wages in a specific sector can lead to a decrease in unemployment in that sector. [1] a c d [2] b d [3] c e [4] a b e [5] Not [1], [2], [3] or [4] 2.4 Which of the following is NOT true? [1] The benefits of productivity improvements should be shared more equitably with workers. [2] The productivity concept should be regarded holistically by also having regard for sold output, consumer satisfaction, quality and value added. [3] Productivity is regarded as a measure of output efficiency. [4] One of the shortcomings according to the traditional approach to defining productivity, is that it does not take account of the quality of the output. [5] None of the above. 2.5 Which of the following is true? [1] Unit labour cost takes account of changes in remuneration costs as well as labour productivity. [2] An increase in unit labour cost implies that the remuneration of workers is increasing less rapidly than labour productivity. [3] According to the efficiency wage hypothesis, higher wages will lead to increased productivity which will fully compensate for the higher labour costs. [4] All of the above. [5] None of the above. ECS2604/101/3/2018 25 2.6 Which of the following is NOT true? [1] Labour brokers and contractors are examples of atypical employment. [2] Advantages of atypical employment include reduced labour costs for employers and more freedom and flexibility for the workers. [3] A disadvantage of atypical employment is that employers are reluctant to train temporary workers. [4] In practice trade unions are less prevalent or even non-existent among atypical employees. [5] Work organisation flexibility can take various forms, such as overtime, flexitime, shift work or a shortened work-week. 2.7 Which of the following statements is/are NOT true? a. Trade liberalisation has no effect on labour standards. b. Globalisation has shifted production from capital and skills intensive sectors to labour intensive sectors. c. The New Partnership for Africa's Development (Nepad) that was launched in 2001 is a framework that sets out conditions to improve the economic growth performance of countries in Africa. d. Nepad recognises the important role that the private sector plays in economic growth. [1] b c d [2] a b [3] Only b [4] c d [5] Not [1], [2], [3] or [4] 2.8 Which of the following statements is/are true? Discouraged work-seekers a. are regarded as part of the labour force. b. are included in the strict definition of unemployment. c. are included in the expanded definition of unemployment. d. form part of the officially unemployed. [1] a b d [2] b d [3] a c [4] Only c [5] Not [1], [2], [3] or [4] 26 2.9 Cyclical unemployment [1] arises as a result of the normal labour turnover that occurs in any dynamic economy and the time lags involved in the re-employment of labour. [2] is due to normal and expected changes in economic activity during the course of a single year. [3] refers to the overall inability of the economy to provide employment for the total labour force, even at the peak of the business cycle. [4] arises during recessionary periods when aggregate demand and, therefore, also the demand for labour is low. [5] occurs when there is a misallocation of resources. 2.10 Which of the following is true? [1] Public Works Programmes were instituted in the 1930s during the depression years, and were again reinstated in South Africa after 1994 with the implementation of the Reconstruction and Development Programme. [2] Workers on Public Works Programmes can gain marketable skills, thereby increasing their employability. [3] Public Works Programmes are only a temporary solution to the unemployment problem in South Africa. [4] Labour standards, particularly wages, play an important role in the successful implementation of Public Works Programmes. [5] All of the above. ECS2604/101/3/2018 27 SEMESTER 1 ASSIGNMENT 03/2018 SELF-ASSESSMENT ASSIGNMENT (Do NOT submit!) TL501: Learning units 9 – 11 Prescribed Book: Chapters 9 – 11 PLEASE DO NOT SUBMIT THIS ASSIGNMENT. Complete it by the date indicated in the study programme and mark it yourself by using the framework of answers provided after the question. 3.1 Give a complete discussion of the human capital theory as a possible explanation for higher earnings being associated with increased education and training, as well as investment in education and training being "profitable". Draw two diagrams to highlight your discussion. Also discuss the difference between the private and social rates of return to education and training. (13) 3.2 Define labour market discrimination and briefly discuss the various types of discrimination often found in labour markets. (7) 3.3 Discuss statistical discrimination as a theory to explain labour market discrimination. (5) [25] FRAMEWORK OF ANSWERS TO ASSIGNMENT 03 The following is not a model answer. It serves merely as a framework to guide you to answer the questions. You are supposed to do the assignment questions (where applicable) in essay format to practise your skills in the writing of essay-type questions. Question 3.1 To answer this question you have to discuss section 9.2 of your textbook. You have to show figures 9.1 and 9.2. Make sure that you discuss the direct and indirect (opportunity cost) costs of education. Area 3 in the diagram (incremental earnings) is also termed the net return to education. Also make sure that you point out the difference between the private and social rates of return to education. In a question like this, figure 9.1 will count about 2 marks and figure 9.2 about 3 marks. The discussion of the question and the diagrams will therefore count 8 marks. (13) Question 3.2 You will find the answer to this question in section 10.2 of your textbook. When you name and describe the four types of labour market discrimination, make sure that you also mention the two categories to which they belong, i.e. before-the-market discrimination and within-the-market discrimination. (7) 28 Question 3.3 See a discussion of statistical discrimination in section 10.3.2 of your textbook. The following serves as additional information on the topic. Discrimination occurs because of imperfect information and a wrong perception of reality. An employer thinks that he can evaluate the actual productivity of a white male worker compared to a minority worker (in this case a black person or a female). In statistical discrimination the discrimination coefficient is equal to zero. The employer discriminates against an individual belonging to a certain group because he believes the group to be less productive. The employer will employ white males because he is certain of their productivity. He tends to be less certain of the productivity of female and black workers. Race and gender therefore determine the production attributes of a worker. Because personnel selection is expensive, the employer makes use of cheaper methods. He therefore selects staff according to education and skin colour. Employers believe that these are perfect determinants of productivity. The individual is therefore discriminated against because he belongs to a specific group which is perceived to be less productive. Most blacks will receive lower wages than their white male counterparts to compensate the employer for the risk that the black worker might not be as productive as the white worker. Employers tend to employ whites with above-average scores in a job application test and blacks with below-average test scores. This kind of discrimination however only has an effect on entry level wages, as the true productivity of workers normally becomes evident with tenure on the job. (5) [25] *** * *** ECS2604/101/3/2018 29 7.5.2 Second semester assignments SEMESTER 2 ASSIGNMENT 01/2018 CLOSING DATE: 17 August 2018 UNIQUE NUMBER: WEIGHT: 40% of semester mark TL501: Learning units 1 – 4 Prescribed Book: Chapters 1 – 4 This assignment contributes 40% towards your semester mark. Please ensure that this assignment reaches the University before the due date. Answer all the questions on a mark-reading sheet or on myUnisa. IMPORTANT! The first ten multiple choice questions of this assignment are not of an academic nature and do not have a correct or incorrect answer. These ten questions, therefore, do not count any marks. They are designed to obtain information required to compile a student profile for this module. Your kind cooperation is requested, as the information assists the department in its ongoing efforts to ensure quality education. Remember to use only an HB pencil if you answer the assignment on a markreading sheet. 1.1 Which one of the following is most true regarding your registration for ECS2604? [1] This is my first registration. [2] This is my second registration. [3] This is my third registration. [4] This is my fourth registration. [5] I have been registered more than four times. 1.2 In Grade 12* [1] I did Mathematics/Mathematical Literacy and passed it. [2] I did not do Mathematics/Mathematical Literacy. [3] I did Economics and passed it. [4] I did not do Economics. * Students who do not have a South African Grade 12 should choose the option they think are most relevant to them. 30 1.3 How long after you registered did you receive your study material? [1] In less than a week. [2] Between one and two weeks. [3] Between two and three weeks. [4] More than three weeks. [5] To date I still have not received anything. 1.4 Which one of the following best describes your access to SMS-messages? [1] I can receive SMS-messages on my own cellphone. [2] I can receive SMS-messages on the cellphone of someone who lives with me. [3] I can receive SMS-messages on the cellphone of someone I know but who does not live with me. [4] I cannot receive SMS-messages at all. 1.5 Which one of the following applies to you? [1] I have access to internet. [2] I have access to e-mail. [3] I have access to both internet and e-mail. [4] I do not have access to either internet or e-mail. 1.6 The section(s) of Tutorial Letter 501 that I had to study to complete this assignment [1] helped me to work through the textbook systematically. [2] did not help me to understand the study material in the textbook better. [3] was totally irrelevant to the assignment questions. [4] I did not use Tutorial Letter 501 at all although I have one. [5] I have not received a Tutorial Letter 501. 1.7 Which one of the following describes your situation best? [1] I worked through the prescribed study material (chapters 1 – 4) before attempting this assignment. [2] I quickly glanced through the prescribed study material before attempting this assignment. [3] I did not study the prescribed study material before attempting the assignment, but looked for the answers in the study material. [4] I could answer the questions without referring to the study material. [5] I just chose my answers randomly. ECS2604/101/3/2018 31 1.8 Concerning the ECS2604 website on myUnisa [1] I am not aware of this website. [2] I am aware of this website, but have not visited it. [3] I visited this website once but did not find it helpful. [4] I visit this website regularly and find it helpful. [5] I visit this website only when I receive an announcement that there is something new. 1.9 Do you find the e-tutor system for ECS2604 helpful? [1] Yes. [2] No, I can cope on my own. [3] I have not been grouped with an e-tutor. [4] I prefer to contact a lecturer. [5] No, for any other reason. 1.10 Do you find the separate Learning Units under the "Learning Units" folder useful, or did you make use of the printed Tutorial Letter 501 which you received (and which is also available under the "Additional Resources" folder)? [1] I did not make use of the separate Learning Units as it is too time consuming. [2] I made use of the printed Tutorial Letter 501 which I received as part of my study package. [3] I made use of Tutorial Letter 501 on myUnisa while I waited for the printed version to be delivered. [4] I made use of Tutorial Letter 501 on myUnisa and printed it myself, as I received my printed study material too late. 1.11 Which of the following is true? In a perfectly competitive labour market it is assumed that [1] workers cannot move between positions within or between organisations or regions. [2] workers have full information on available jobs and wage rates. [3] employers act rationally in the sense that their goal is the maximisation of utility. [4] workers all have different skills. [5] workers exercise full influence over the market wage. 1.12 Which of the following statements is/are true? a. The total labour force or the economically active population (EAP) consists of workers in the formal as well as the informal sectors, self-employed persons and employers, as well as unemployed persons. b. The total labour force or the economically active population (EAP) excludes unemployed persons. c. The so-called discouraged work-seekers are those persons who are unemployed, want to work, and are indeed actively seeking employment. d. The expanded definition of unemployment excludes discouraged work-seekers. 32 [1] b d [2] b c [3] a b c [4] a c d [5] Not [1], [2], [3] or [4] 1.13 Which of the following is NOT true? [1] The labour force participation rate (LFPR) is equal to the potential labour force divided by the actual labour force, multiplied by 100. [2] The labour force participation rate (LFPR) is the percentage of the population of working age that is economically active. [3] South Africa has a high dependency ratio because young people make up a high proportion of the total population, but a relatively small proportion of the labour force. [4] Where there is no increase or decrease in the population, the fertility rate = the mortality rate. This is called the replacement level or breakeven point. [5] None of the above. 1.14 Which of the following statements is/are true? a. Possible consequences of HIV/Aids are a depletion of human capital, poverty and inequality, as well as high direct health costs. b. The most serious loss that the country of origin suffers when skilled people emigrate is the so-called "brain drain", i.e. the loss of earlier investment in education and training. c. The inflow of unskilled migrants is usually not beneficial to the receiving country as these immigrants normally contribute very little to taxes. [1] a b [2] a c [3] b c [4] a b c [5] Not [1], [2], [3] or [4] 1.15 An indifference curve [1] indicates various combinations of income and leisure time that renders various levels of utility to an individual. [2] indicates constant combinations of income and leisure time that renders various levels of satisfaction to an individual. [3] indicates various combinations of income and leisure time that renders a constant level of utility or satisfaction to an individual. [4] indicates the same combinations of utility and satisfaction that renders various levels of income to an individual. [5] that lies further away from the origin (i.e. a higher indifference curve) indicates a lower level of utility for the individual. ECS2604/101/3/2018 33 1.16 Which of the following is true? [1] Utility maximisation takes place at the point where the indifference curve and the budget line touches (is tangent to) each other. [2] The demand for labour is a derived demand which means that it is dependent on the consumer demand for the produced product or the service provided. [3] In the long run an employer can replace labour with capital. The output effect and substitution effect will therefore determine the long-run demand for labour. [4] All of the above. [5] None of the above. 1.17 Which of the following statements is/are true? a. The informal sector can be regarded as the statistically unrecorded part of the economic activity of a country. b. Informal sector activities can often be individually or family owned. c. The average monthly income in the informal sector is always higher than the average monthly income in the formal sector. d. The labour absorption capacity of the economy can be defined as the percentage of new entrants to the labour force that find a job in the informal sector of the economy. e. The employment coefficient is equal to the percentage change in employment divided by the percentage change in population growth. [1] b d e [2] a b [3] b c d [4] a b e [5] Not [1], [2], [3] or [4] Question 1.18 is based on the following table. 1.18 Which of the following statements is/are true? a. An individual firm operating in a perfectly competitive labour market is in equilibrium when the marginal revenue product (MRP) of labour is equal to the wage rate. b. The marginal revenue product (MRP) for the second worker equals R120. c. The data in the table can be used to draw the demand curve for labour, in other words the MR curve. Number of workers Total product Marginal product Price per unit of output (R) 0 0 0 5 3 400 80 5 34 d. If the marginal product of workers double as a result of better training and supervision, and the wage rate remains at R1 200 per worker, 2 workers will be employed to maximise profits. e. The marginal product is equal to the total product divided by the number of workers. [1] a d [2] b c e [3] c d [4] Only a [5] Not [1], [2], [3] or [4] 1.19 Which of the following statements is/are true? a. The secondary labour market is characterised by high earnings, good working conditions and employment stability. b. A discriminating monopsonist pays all employees identical reservation wages. c. The cost minimising position for an employer in the long run will be at the intersection point of an isocost curve with an isoquant. d. Medical doctors form part of the secondary segment of the dual labour market. [1] a b d [2] c d [3] b c [4] a d [5] Not [1], [2], [3] or [4] 1.20 Which of the following statements is/are true? a. The total production curve has three distinct stages namely, stage 1 where the total production function initially increases, stage 2 where it increases at a decreasing rate and stage 3 where total production starts to decrease. b. The profit maximising condition for an individual firm in a perfectly competitive labour market is where marginal cost of labour = marginal revenue product of labour (MC = MRP). c. The short-run demand curve for labour is relatively unresponsive to wage changes; it is therefore more elastic than the long-run demand curve for labour. d. In a monopsony labour market equilibrium can be reached at a point where both wages and employment are higher than would be the case in a perfectly competitive labour market. [1] a b d [2] c d [3] Only b [4] a d [5] Not [1], [2], [3] or [4] ECS2604/101/3/2018 35 SEMESTER 2 ASSIGNMENT 02/2018 CLOSING DATE: 14 September 2018 UNIQUE NUMBER: WEIGHT: 60% of semester mark TL501: Learning units 5 – 8 Prescribed Book: Chapters 5 – 8 This assignment contributes 60% towards your semester mark. Please ensure that this assignment reaches the University before the due date. Answer all the questions on a mark-reading sheet or on myUnisa. Remember to use only an HB pencil if you answer the assignment on a markreading sheet. 2.1 Which of the following statements is/are NOT true? a. The right to bargain collectively is not acknowledged in the Constitution of South Africa and in labour legislation. b. Market forces and the economic environment also play a role in the outcome of collective bargaining. c. Unions were formed because industrialisation caused employees as individuals to have full control over their earnings, working conditions and job security. d. Trade unions in South Africa are still strongly politicised and are seen as the only vehicle for liberation from oppression. [1] a b [2] a c d [3] b c [4] a d [5] Not [1], [2], [3] or [4] 2.2 The superior worker effect refers to the [1] decline in non-union wages caused by displaced union workers supplying their services in the non-unionised labour market. [2] increase in non-union wages that is offered by a non-unionised employer who fears unionisation. [3] higher wages paid by unionised firms which will have the effect that workers queue for the higher paying union jobs. [4] impact that unions have on the elasticity of labour demand. [5] impact that unions have on the cost of labour. 36 2.3 Which of the following statements is/are true? The introduction of a minimum wage a. will definitely lead to increased spending on training by small enterprises. b. will lead to an excess supply of workers provided that the minimum wage is set below the equilibrium wage. c. can increase poverty levels if large numbers of workers become unemployed as a result of the introduction thereof. d. will have a smaller negative effect on the number of workers employed in sectors where the demand for their services is more inelastic. e. ensures that all workers are remunerated according to their marginal productivity. [1] a b c [2] b c d [3] b e [4] c e [5] Not [1], [2], [3] or [4] 2.4 Which of the following is true? [1] High productivity supports high levels of income and allows citizens the option of choosing more leisure instead of longer working hours. [2] Because productivity growth can absorb increases in money wages, it can be regarded as an anti-inflationary force. [3] Workers who are negatively affected by productivity improvements should be retrained and assigned to other jobs. [4] Multifactor productivity takes account of both labour and capital inputs. [5] All of the above. 2.5 Which of the following is true? [1] Labour market flexibility refers to the extent to which an enterprise can alter various aspects of its work and workforce to meet the demands of the business. [2] Unit labour cost is the combined cost of labour and technology to produce one unit of output. [3] Productivity is equal to the number of units of capital divided by the units of output. [4] Bargaining councils and minimum wages normally increase wage flexibility. [5] Labour market flexibility has no impact on productivity at all. 2.6 Which of the following statements is/are true? Atypical employees a. always have a long-term relationship with their employer. b. reduce labour costs for an employer. c. allows the employer more flexibility in the utilisation of labour. d. form part of the core workers of a company. e. usually receive medical and pension benefits from their employers. ECS2604/101/3/2018 37 [1] a d e [2] b c [3] c e [4] a b c [5] Not [1], [2], [3] or [4] 2.7 Which of the following statements is/are true? a. Globalisation proved to have a minimal effect on the labour market in South Africa. b. The inflexibility of wage determination and the negative effect of labour laws on the cost of labour in South Africa have both led to a serious competitive disadvantage when comparing South Africa with other benchmarking countries. c. South Africa has a relatively closed economy with regard to trade and the mobility of labour. d. Labour costs are becoming increasingly important in determining international comparative advantage. [1] Only a [2] b c [3] a c [4] b d [5] Not [1], [2], [3] or [4] 2.8 Which of the following statements is/are true? a. According to the broad, non-refined definition of unemployment an unemployed person is a person who is without work, is currently available for work and is seeking work or wanting to work. b. The major proportion of unemployment in South Africa is seasonal rather than structural. c. The expanded definition of unemployment includes discouraged work-seekers and therefore this percentage is always substantially higher than the percentage for the strict definition of unemployment. d. Discouraged work-seekers have taken active steps to search for employment or to start some form of self-employment. e. Statistics on registered unemployment are obtained from returns submitted on a monthly basis by the different placement centres of the Department of Labour. [1] a c e [2] b d [3] a b e [4] c d [5] Not [1], [2], [3] or [4] 38 2.9 Structural unemployment [1] arises as a result of the normal labour turnover that occurs in any dynamic economy and the time lags involved in the re-employment of labour. [2] is due to normal and expected changes in economic activity during the course of a single year. [3] refers to the overall inability of the economy to provide employment for the total labour force, even at the peak of the business cycle. [4] arises during recessionary periods when aggregate demand, as well as the demand for labour is low. [5] occurs when there is an underutilisation of worker's skills. 2.10 Which of the following statements is/are true? a. The three broad approaches of measuring unemployment are the sample survey method, the population census method and the registration method. b. The unemployment figure for South Africa, and especially in rural areas, decreases sharply when the expanded definition instead of the strict definition of unemployment is used. c. The Phillips curve is a graphical representation of a trade-off between inflation and employment. d. The administration costs to introduce a basic income grant (BIG) to alleviate poverty in South Africa, will be negligible and easily manageable. e. Public Works Programmes can be regarded as one of the permanent solutions for South Africa's unemployment problems. [1] a b e [2] Only a [3] b c e [4] a c d [5] Not [1], [2], [3] or [4] ECS2604/101/3/2018 39 SEMESTER 2 ASSIGNMENT 03/2018 SELF-ASSESSMENT ASSIGNMENT (Do NOT submit!) TL501: Learning units 9 – 11 Prescribed Book: Chapters 9 – 11 PLEASE DO NOT SUBMIT THIS ASSIGNMENT. Complete it by the date indicated in the study programme and mark it yourself by using the framework of answers provided after the question. 3.1 Give a complete discussion of the human capital theory as a possible explanation for higher earnings being associated with increased education and training, as well as investment in education and training being "profitable". Draw two diagrams to highlight your discussion. Also discuss the difference between the private and social rates of return to education and training. (13) 3.2 Define labour market discrimination and briefly discuss the various types of discrimination often found in labour markets. (7) 3.3 Discuss statistical discrimination as a theory to explain labour market discrimination. (5) [25] FRAMEWORK OF ANSWERS TO ASSIGNMENT 03 The following is not a model answer. It serves merely as a framework to guide you to answer the questions. You are supposed to do the assignment questions (where applicable) in essay format to practise your skills in the writing of essay-type questions. Question 3.1 To answer this question you have to discuss section 9.2 of your textbook. You have to show figures 9.1 and 9.2. Make sure that you discuss the direct and indirect (opportunity cost) costs of education. Area 3 in the diagram (incremental earnings) is also termed the net return to education. Also make sure that you point out the difference between the private and social rates of return to education. In a question like this, figure 9.1 will count about 2 marks and figure 9.2 about 3 marks. The discussion of the question and the diagrams will therefore count 8 marks. (13) Question 3.2 You will find the answer to this question in section 10.2 of your textbook. When you name and describe the four types of labour market discrimination, make sure that you also mention the two categories to which they belong, i.e. before-the-market discrimination and within-the-market discrimination. (7) 40 Question 3.3 See a discussion of statistical discrimination in section 10.3.2 of your textbook. The following serves as additional information on the topic. Discrimination occurs because of imperfect information and a wrong perception of reality. An employer thinks that he can evaluate the actual productivity of a white male worker compared to a minority worker (in this case a black person or a female). In statistical discrimination the discrimination coefficient is equal to zero. The employer discriminates against an individual belonging to a certain group because he believes the group to be less productive. The employer will employ white males because he is certain of their productivity. He tends to be less certain of the productivity of female and black workers. Race and gender therefore determine the production attributes of a worker. Because personnel selection is expensive, the employer makes use of cheaper methods. He therefore selects staff according to education and skin colour. Employers believe that these are perfect determinants of productivity. The individual is therefore discriminated against because he belongs to a specific group which is perceived to be less productive. Most blacks will receive lower wages than their white male counterparts to compensate the employer for the risk that the black worker might not be as productive as the white worker. Employers tend to employ whites with above-average scores in a job application test and blacks with below-average test scores. This kind of discrimination however only has an effect on entry level wages, as the true productivity of workers normally becomes evident with tenure on the job. (5) [25] *** * *** ECS2604/101/3/2018 41 8 EXAMINATION For general examination guidelines and examination preparation guidelines, please refer to the study@Unisa brochure. 8.1 Examination period This module is offered in a semester period of approximately 15 weeks. This means that if you are registered for the first semester, you will write the examination in May/June 2018 and the supplementary examination will be written in October/November 2018. If you are registered for the second semester you will write the examination in October/November 2018 and the supplementary examination will be written in May/June 2019. During the semester, the Department of Examination Administration (DEA) will provide you with information regarding the examination in general, examination venues, examination dates and examination times. 8.2 Examination paper The format of the examination paper is discussed in detail in Tutorial Letter 102 (which you will receive during the semester). The structure of the examination paper is as follows: It is a two-hour paper and consists of two sections (A and B) making up a total of 100 marks. Section A consists of essay-type questions, shorter questions, definitions, explanations, diagrams that have to be drawn, etc and counts either 40 or 50 marks. You have to answer ALL the questions and therefore get NO CHOICE in this section. Section B counts either 60 or 50 marks and consists of 30 or 25 multiple choice questions counting 2 marks each. Examples of multiple choice questions appear throughout Tutorial Letter 501 and the assignments. A final mark (semester mark + examination mark), as explained in section 7.1.2 "How will this work in practice", of 50% is required to pass this module. VERY IMPORTANT: All the learning units in Tutorial Letter 501 and their corresponding chapters in the textbook are prescribed for the exami