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Labour Economics
ECS2604
First Semester
Department of Economics
IMPORTANT INFORMATION:
This document contains Questions to Assessment 04.
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ECS2604/2023
Question 1 [20]
1.1 Assume that the price of wine will increase from R50 to R75.
Which of the following supply factors might account for this rise in
price?
a) A discovery that wine can slow down your liver.
b) A lack of rainfall.
c) Increased supply of grapes.
d) An increase in the number of accidents due to drinking
and driving.
1.2 Soccer players earn more than teachers because?
a) Soccer players are more experienced than teachers.
b) Soccer players represent the country.
c) Soccer players have more sponsors than teachers.
d) Scarcity in the number of skilled soccer players.
1.3 Assume Mashudu makes 550 dresses each week and the total
number of employees amounts to 50. Due to the outbreak of load-
shedding, production is interrupted. Monica sees it fit to cut down
their working hours to 80% according to the load-shedding
schedule. What is labour productivity? a) 7,6
b) 5,5
c) 8,8
d) 9,1
1.4 Assuming that for Bridget the substitution effect is stronger than
the income effect, which of the following applies to her?
a) She will work few hours and her labour supply will
decrease
b) She will work more hours and her labour supply will
increase
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, lOMoAR cPSD| 48011787
ECS2604/2023
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.
1.5 Michael is denied a job working as a nurse only because he is a
male, despite possessing the right qualifications. This is an example
of …
a) human capital discrimination.
b) None of the given options.
c) wage discrimination.
d) before-the-market discrimination
1.6 Which of the following is NOT a reason for structural
unemployment?
a) Rapid growth of labour force
b) Use of capital-intensive technology
c) Inflexible labour market
d) Economic recession
1.7 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 capital 250
Quantity of labour 400
Quantity of output 5000
a) 1.25; 2
b) 7.69; 7.69
c) 12.5; 20
d) 20; 12.5
1.8 Which of the following is incorrect regarding a bargaining
council?
a) It is a permanent collective bargaining institution.
b) It is established on a compulsory basis.
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