ECS2604. Tutorial Letter 201/1/2018. Labour Economics. Semester 1. Department of Economics ECS2604/201/1/2018
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1 ECS2604/201/1/2018 Tutorial Letter 201/1/2018 Labour Economics ECS2604 Semester 1 Department of Economics 1. TL 102/3/ TL 201/1/ TL 202/1/2018 BARCODE
2 This TL201/1/2018 contains all three tutorial letters that have been uploaded under "Additional Resources". Unisa does not print tutorial matter of less than 20 pages. All three tutorial letters (TL102, TL201 and TL202) for Semester 1 have only been duplicated in this TL201 for the sake of convenience of one tutorial letter. NOTHING NEW IS ADDED IN THIS TUTORIAL LETTER. IF YOU HAVE PRINTED TL102, TL201 AND TL202 AS IT APPEARS UNDER "ADDITIONAL RESOURCES", YOU ALREADY HAVE ALL THE INFORMATION. THIS IS JUST ONE DOCUMENT CONTAINING ALL THREE MENTIONED ABOVE. All the best with your preparation for the examinations! Your Lecturers 2
3 ECS2604/201/1/2018 TL102/3/2018 CONTENTS 1 Inventory Study material for examination Examination paper Format of the examination paper for the 2018 examinations Previous examination papers Communication with e-tutors Communication with lecturers... 5 ** *** ** 3
4 1 INVENTORY To date you should have received the following tutorial matter: STUDY GUIDE TL501/3/2018 (the Study Guide) DATE On registration TUTORIAL LETTERS Number Contents Date 101/2018 Study material, assignments, On registration closing dates, study programme, contact details of lecturers, etc PLEASE READ YOUR TUTORIAL LETTERS! MANY OF YOUR QUESTIONS WILL BE ANSWERED BY DOING THIS. PLEASE TAKE NOTE: You will have to print Tutorial Letters 102, 201 and 202 yourselves once they appear on myunisa. UNISA no more prints and sends tutorial letters of less than 20 pages. 4
5 ECS2604/201/1/ STUDY MATERIAL FOR EXAMINATION Your study material for the examination consists of the textbook by Frans Barker (Revised 5 th edition, 2015), Tutorial Letter 501/2018 (the Study Guide) and Tutorial Letters 101/2018, 102/2018, 201/2018 and 202/2018. Study all the relevant sections in the textbook as indicated in TL501. Do not leave out any sections or chapters and do not spot certain questions! THE EXAMINATION PAPER COVERS THE ENTIRE SYLLABUS. See TL501 for the only part that can be left out (Chapter 7, Section 7.7, Deeper Insight: Why do countries trade?). The importance of diagrams in this module cannot be emphasised enough. These diagrams are mostly covered in the DEEPER INSIGHT sections of certain chapters. You need not memorise tables that appear in the text, but you have to be aware of the trends of these statistics. No long written questions will be asked on chapter 7 AND chapter 11 in the 2018 examinations only multiple choice questions will be asked. No discussion classes are offered in this module any more. Please do not contact us to enquire why not. It is a decision taken by University Management and we cannot do anything about it. The e-tutors (and in certain instances face-to-face tutors) who have been appointed for each module offered, replace the previous discussion classes as these classes only reached a small percentage of the students. The implementation of this process sometimes does have problems, inter alia, the availability of qualified, able tutors in a specific module. 3 EXAMINATION PAPER 3.1 Format of the examination paper for the 2018 examinations The examination paper is a two hour paper and counts 100 marks in total. The paper consists of two sections: A and B. Section A counts 40 marks and consists of long questions (essay-type) or shorter paragraph questions and diagrams. You do not get any choice in this section and have to answer ALL the questions. You will be expected to discuss, define, explain, describe and draw diagrams on all the various topics in the syllabus. Section B counts 60 marks and consists of 30 multiple choice questions counting 2 marks each. Questions are not marked negatively. You have to answer ALL the questions. Section B has to be answered on a mark reading sheet. NB: As the mark reading sheet can get lost, you also have to write your answers to Section B in the table provided in the exam script. Do not spend too much time on a specific section. If you are in doubt, rather carry on with the next question. You can always return to the problematic question at the end. Please consult the examination timetable on your admission letter (or on myunisa) for the exact date, time and venue of the examination. Make sure that you do not arrive at the wrong examination centre, on the wrong date or at the wrong time. 5
6 3.2 Previous examination papers Previous examination papers for this module are uploaded on myunisa under the heading "Official Study Material". These papers merely serve as an example of how questions can be asked. Do not make the mistake to "spot" by studying only these papers as it can for certain lead to a fail mark in the examination. You have to study the whole syllabus. You will be given no choice of questions in the exam paper all questions will be compulsory and all will have to be answered. No model answers for the long questions or answers to the multiple choice questions will be supplied. Please do not phone or us to enquire about it. 4 COMMUNICATION WITH E-TUTORS Your e-tutor is your first contact should you experience any problems with the content of the module. You are, however, also welcome to contact us lecturers with your subject related problems. Contact the relevant administration department (as per study-at-unisa 2018) for admin related queries. Follow the directions on myunisa to your specific e-tutor website. The e-tutors supply slides and will assist you in the understanding of sections which you experience problems with, as well as with the interpretation of diagrams. They are all well equipped to assist you. Please contact them and make use of the assistance they offer!! 5 COMMUNICATION WITH LECTURERS The following two lecturers are responsible for this module: Ms EJ du Toit (Module Leader) Tel: (012) Samuel Pauw Building, UNISA Main Campus, Office number: dtoitej@unisa.ac.za Ms NW Gamede Tel: (011) Tswelopele Building, FLORIDA CAMPUS. Office number: 405/4 Please contact her on her Johannesburg telephone number. gamednw@unisa.ac.za Ms Gamede also has an office at Samuel Pauw Building, Office number 4-09, but is mainly available at Florida Campus. Her Pretoria telephone number is (012) Please make an appointment should you wish to come and see a lecturer in person. Do not arrive without an appointment as the lecturer might not be able to see you at that specific time. Should you encounter any problems of an academic nature while studying which the e-tutors cannot resolve, please feel free to contact us. As a student you are important to us and we are here to assist you should you encounter problems with understanding the study material while preparing for the exams. 6
7 ECS2604/201/1/2018 BUT: Do not contact us to enquire about what is important for the exam or what you can leave out, etc. You cannot leave out anything all the material that is prescribed is important, should be studied and can be asked in the exam. Refer to TL501 for the only part (Chapter 7, paragraph 7.7, Deeper Insight) that can be left out. Read your tutorial letters carefully and please do not contact your lecturers with administrative and other general enquiries. Consult the study-at-unisa 2018 brochure for the contact details of the relevant administrative department you wish to contact. For your convenience the information is again supplied below. The first point of contact for any enquiry regarding administrative support should be directed to the contact points listed below: DESCRIPTION OF ENQUIRY SMS NUMBER ADDRESS Applications and registrations Assignments Examinations Study material Student accounts myunisa mylife Book request (Library) AirPAC Another important point: The telephone lines at Unisa are very busy during exam times and each lecturer is responsible for a couple of modules. There is therefore no guarantee that you will be able to get through to your lecturers in the last days before you write exam in a specific module. You must therefore not postpone you studies. Study your work in time and make contact with your e-tutor or with us in time, should you encounter problems. We hope that the course will be beneficial for your career and wish you all the best with your studies as well as success in the examination. Kind regards. Ms EJ du Toit (Module Leader) Ms NW Gamede ** *** ** 7
8 TL201/1/2018 INVENTORY To date you should have received the following PRINTED tutorial matter: STUDY GUIDE TL501/2018 (the Study Guide) DATE On registration TUTORIAL LETTERS Number Contents Date 101/2018 Study material, assignments, On registration closing dates, study programme, contact details of lecturers, etc. TUTORIAL LETTERS UPLOADED on myunisa under "Additional Resources" 102/2018 Study material for exam, March 2018 format of exam paper, e-tutors, etc You have to print Tutorial Letter 102 yourself. UNISA no more prints and mails tutorial letters of less than 20 pages. ** *** ** 8
9 ECS2604/201/1/2018 Dear Student This tutorial letter contains the correct answers as well as explanations to Assignment 01/2018 (first semester). Please make sure that you check your incorrect answers. Assignment 02/2018 is also compulsory and you have to submit it as well. It also contributes to your semester mark. The last assignment (Assignment 03/2018) is a self-assessment assignment you are not required to submit it. Complete the assignment and compare your answers afterwards with the framework of answers supplied directly after the assignment. Your two compulsory assignments will contribute 20% and your exam mark 80% towards your final mark. Your first assignment contributes 40% and the second assignment 60% to the assignment mark (semester mark). Also see Tutorial Letter 101/3/2018 (pp 12 13) for more information on this. This tutorial letter forms part of your study material for examination purposes. It is important that you are able to answer questions like these as well as those in TL501/3/2018. Test yourself on these questions in preparing for the examination. All the study material, except the prescribed book, is available on myunisa. The tutorial letters in which the answers to the assignments are given (the 200-series of tutorial letters) will become available under "Additional Resources" after the due dates of the assignments, and after all have been marked. You have to print Tutorial Letters 102, 201 and 202 yourself. UNISA no more prints and mails tutorial letters of less than 20 pages. Tutorial Letters 501/3/2018 and 101/3/2018 are immediately available online under "Official Study Material" after registration. Tutorial Letter 501 is also uploaded as separate Learning Units on myunisa under the tab "Learning Units. You should also be linked to an e-tutor. The e-tutor is your first contact with regard to the difficulties that you may experience concerning the course content. Follow the directions on myunisa to your e-tutor website. You are, however, also welcome to contact your lecturers with regard to course content difficulties. Contact the relevant administration department (as per study-at-unisa 2018) for admin related queries. The contact information for all relevant admin queries also appears on myunisa under FAQs. Good luck with your studies! Ms EJ du Toit (Module Leader) Tel: (012) Samuel Pauw Building, UNISA Main Campus, Office number: dtoitej@unisa.ac.za Ms NW Gamede Tel: (011) Tswelopele Building, FLORIDA CAMPUS. Office number: 405/4 Please contact her on her Johannesburg telephone number. gamednw@unisa.ac.za Ms Gamede also has an office at Samuel Pauw Building, Office number 4-09, but is mainly available at Florida Campus. Her Pretoria telephone number is (012)
10 ASSIGNMENT 01/2018 (Unique number: ) FIRST SEMESTER ANSWERS The first ten generic questions were asked to determine the student profile of this module. Thank you for answering them. These questions do not have "correct" or "incorrect" answers. They do not count any marks and do not contribute towards your semester mark EXPLANATIONS 1.11 Correct option: [4]. Statement (a) is true. See Barker: 3. Statement (b) is not true. The first part of the statement is correct, but not the second part. A worker and the services that he renders cannot be physically separated. See Barker: 2. Statement (c) is not true. A labour market should contribute to the objective of equity or equality. See Barker: Correct option: [1]. Statements (a) and (b) are true. See Barker: 4 5. In addition, work through Section 1.3 in TL501/2018 (pp 15 19) where the difference between demand versus quantity demanded and supply versus quantity supplied are explained. These concepts were also studied extensively in ECS1501. If you still experience problems with the distinction between the two concepts, refer to your first year studies. Statement (c) is not true. Supply does not equal demand it is the quantity supplied which is equal to the quantity demanded. Refer to statement (b) as well. Statements (d) and (e) are true. See the explanation above Correct option: [5]. Statement [5] is the only statement which gives the complete definition. See Barker: Correct option: [5]. Statement [1] is true. See Barker: 19. Statement [2] is not true. Skilled migration inflows are beneficial to the receiving country in that the contribution to taxes by these immigrants is normally greater compared to what they cost the government in welfare payments, education, etc. See Barker: 25. Statement [3] is true. See Barker: 11. Statement [4] is not true. See Barker: The indifference curve of a workaholic is relatively flat (elastic), while the indifference curve of a leisure lover is relatively steep (inelastic). Statements [2] and [4] are therefore both not true hence the correct option to choose is [5]. 10
11 ECS2604/201/1/ Correct option: [4]. Statement (a) is true. See Barker: and Figure 2.5. Statement (b) is true. See Barker: as well. Statement (c) is also true. See Figure 2.6 and Barker: 31. Statement (d) is not true. It is the individual supply curve of labour that is backward bending and not the market supply curve of labour. See Figure 2.12 in Barker: 34 for the market supply curve of labour. Statement (e) is not true. It is called the substitution effect. See Barker: Correct option: [3]. Statement [1] is true. The long-term demand curve for labour is more elastic (flatter) than the short-term demand curve for labour which is steeper (more inelastic). See Figure 3.6 and the explanation in Barker: 57. Statement [2] is true. Urbanisation is a worldwide phenomenon due to more job opportunities in urban areas, as well as due to mechanisation in the agricultural sectors leading to unemployment of unskilled labour. See Barker: Statement [3] is not true. The population census is not very reliable, and there are other somewhat more reliable methods to measure employment. See Barker: in this regard. Statement [4] is true. See Barker: 65. Statement [5] is true. See Barker: Statement [3] is the only statement which is not true hence the correct option to choose is [3] Correct option: [2]. Statement (a) is not true. See Barker: The employment elasticity of economic growth indicates the sensitivity of employment to changes in economic growth. Statement (b) is true. See Barker: 42. Statement (c) is true. See Barker: Correct option: [1]. Statement (a) is true. The informal sector can alleviate poverty to some extent, but does not necessarily solve it. See Barker: 52. Statement (b) is not true. The informal sector usually makes use of simple labour-intensive technology. See Section 3.6 in Barker: Statement (c) is true. See Barker: 51. The informal sector is seen as being separate from the formal sector. Statement (d) is not true. See Barker: 52. Informal sector businesses are mostly (but not always) legal, but unregistered Correct option: [3]. Statement [1] is true. See Barker: 55. Statement [2] is true. See Barker: 56 and Figure 3.5. Statement [3] is not true. The law of diminishing marginal product is used to derive the short-term demand curve for labour. See Barker: Statement [4] is true. See Barker: 58 and Figure 3.8. Statement [5] is true. See Barker: 59 and Figure The cost minimising (profit maximising) point on this diagram will be at point A. Statement [3] is the only statement which is not true hence the correct option to choose is [3] Correct option: [5]. Statement (a) is true. See Barker: Statement (b) is not true. There is normally only one employer in a monopsonistic labour market. See Barker: 85. Statement (c) is true. See Barker: Statement (d) is true. See Barker: 87 and Figure 4.7. Statement (e) is not true. MC = AC = the supply curve for a perfectly discriminating monopsonist. See Barker: 86 as well as Figure 4.6. In the case of a nondiscriminating monopsonist, the MC curve lies above the AC curve or the supply curve of labour. See Figure 4.7, Barker: 87. As there is no option indicating that statements (a), (c) and (d) are true, you have to choose option [5]. ** *** ** 11
12 TL202/1/2018 INVENTORY To date you should have received the following PRINTED tutorial matter: STUDY GUIDE TL501/2018 (the Study Guide) DATE On registration TUTORIAL LETTERS Number 101/2018 Contents Study material, assignments, closing dates, study programme, contact details of lecturers, etc. Date On registration TUTORIAL LETTERS UPLOADED on myunisa under "Additional Resources" 102/2018 Study material for exam, March 2018 format of exam paper, e-tutors, etc 201/2018 Answers to Assignment 01 April 2018 You have to print Tutorial Letters 102 and 201 yourself. UNISA no more prints and mails tutorial letters of less than 20 pages. * *** * Dear Student Below you will find the correct answers and explanations to Assignment 02/2018 (first semester). Make sure that you check your incorrect answers. As has been said earlier, this tutorial letter forms part of your study material for examination purposes. You can access this tutorial letter on myunisa under "Additional Resources". Your e-tutor is your first contact should you experience any problems with the content of the work. Follow the directions on myunisa to your specific e-tutor website. You are also welcome to contact any of the two lecturers mentioned below with your subject related problems. IMPORTANT! This is the last tutorial letter which you will receive before you sit for the examination. The final demarcation (scope) for the exam is also supplied in this tutorial letter. No more information on the exam will be supplied at any later date. 12
13 ECS2604/201/1/2018 Good luck with your studies! Ms EJ du Toit (Module Leader) Tel: (012) Samuel Pauw Building, UNISA Main Campus, Office number: Ms NW Gamede Tel: (011) Tswelopele Building, FLORIDA CAMPUS. Office number: 405/4 Please contact her on her Johannesburg telephone number. Ms Gamede also has an office at Samuel Pauw Building, Office number 4-09, but is mainly available at Florida Campus. Her Pretoria telephone number is (012) ASSIGNMENT 02/2018 FIRST SEMESTER (Unique number: ) ANSWERS EXPLANATIONS 2.1 Correct option: [2]. Statement (a) is not true. They do not have equal bargaining power. See Barker: 90. Statement (b) is not true. The demand for the specific product will decrease, and therefore the employer will resist the higher wage demands. See Barker: 91. Statement (c) is true. See Barker: 91. Statement (d) is true. See Barker: 103. Statement (e) is true. See Barker: 99, as well as Figure 5.2 in Barker: Correct option: [3]. Statement (a) is true. See Barker: 109. Statement (b) is not true. Bargaining councils can be reasonably effective in ensuring that atypical employees are also covered by collectively agreed wages and conditions of employment, but cannot guarantee perfect coverage ad infinitum. See Barker: Statement (c) is true. See Barker: 109. Statement (d) is not true. Bargaining councils can lead to inflexibility in the labour market. See Barker:
14 2.3 Correct option: [1]. Statement (a) is true. See Barker: 114. Statement (b) is not true. Minimum wages are also instituted in sectors where wages are exceptionally low. See Barker: 114. Statement (c) is true. See Barker: 115. Statement (d) is true. See Barker: 115. Statement (e) is not true. Unemployment will increase. See Barker: and Figure 5.5. The institution of a minimum wage will lead to a decrease in employment therefore an increase in unemployment. 2.4 Correct option: [3]. Statement [1] is true. See Barker: 126. Statement [2] is true. See Barker: 125. Statement [3] is not true. Productivity is a measure of input efficiency. See Barker: 124. Statement [4] is true. See Barker: 125. Statement [3] is the only statement which is not true hence you had to choose option [3]. 2.5 Correct option: [1]. Statement [1] is true. See Barker: 130. Statement [2] is not true. It means that the remuneration of workers is increasing more rapidly than labour productivity. See Barker: 130. Statement [3] is not true. Higher wages can lead to an equivalent increase in productivity. Whether the improvement in productivity will fully compensate for the increased labour costs, is uncertain and cannot be assumed as given. See Barker: Correct option: [5]. Statement [1] is true. See Barker: 140. Statement [2] is true. See Barker: Statement [3] is true. See Barker: 142. Statement [4] is true. See Barker: 143. Statement [5] is not true. The statement describes working time flexibility. See Barker: Correct option: [2]. Statement (a) is not true. See Barker: 159. Statement (b) is not true. Globalisation has shifted production in favour of capital- and skills-intensive sectors, and to the disadvantage of labour-intensive ones. See Barker: Statement (c) is true. See Barker: 172. Statement (d) is true. See Barker: Correct option: [4]. Statement (a) is not true. Discouraged work-seekers are not regarded as part of the labour force. See Barker: 183. Statement (b) is not true. Discouraged workseekers form part of the expanded definition of unemployment. See Barker: 183. Statement (c) is true. See Barker: 184, as well as the explanation for statement (b) above. Statement (d) is not true. Also see Barker: Correct option: [4]. Statement [1] is not true. The statement describes frictional unemployment. See Barker: 186. Statement [2] is also not true. The statement describes seasonal unemployment. See Barker: 187. Statement [3] is not true. It describes structural unemployment. See Barker: 187. Statement [4] is true. See Barker: 186. Statement [5] is not true. It refers to invisible underemployment. See Barker: Correct option: [5]. Statement [1] is true. See Barker: Statement [2] is true. See Barker: 206. Statement [3] is true. See Barker: 205. Statement [4] is true. See Barker: 206. Since all four statements are correct, you have to choose option [5]. 14 * *** *
15 ECS2604/201/1/2018 FINAL INFO AND THE SCOPE OF THE EXAMINATION PAPER FOR THE FORTHCOMING EXAMS FORMAT AND MARK ALLOCATION FOR THE MAY/JUNE 2018 EXAMINATION PAPER The examination paper is a two hour paper and counts 100 marks in total. The paper consists of two sections: A and B. Section A counts 40 marks and consists of TWO long questions (essay-type) or shorter paragraph questions and diagrams. You do not get any choice in this section and have to answer ALL the questions. You will be expected to discuss, define, explain, describe and draw diagrams on all the various topics in the syllabus. The long questions have subdivisions. No long questions will be asked on chapter 7 AND chapter 11 (as has been said earlier in TL102/3/2018, paragraph 2, "Study material for examination") only MCQ questions will be asked. ONE LONG question will come from CHAPTER 6, CHAPTER 8 AND CHAPTER 9. The other long question can come from ANY of the chapters, EXCEPT CHAPTER 7 AND CHAPTER 11 (see above and Section B as well). Section B counts 60 marks and consists of 30 multiple choice questions counting 2 marks each. Questions are not marked negatively. You have to answer ALL the questions. Section B has to be answered on a mark reading sheet. NB: As the mark reading sheet can get lost, you also have to write your answers to Section B in the table provided in the exam script. MCQ QUESTIONS WILL BE ASKED ON ALL 11 CHAPTERS OF THE TEXTBOOK. The above is the FINAL demarcation for the exam. Do not contact us to enquire a more narrowing down of what you should study! Do not spend too much time on a specific section. If you are in doubt, rather carry on with the following question. You can always return to the problematic question at the end. PREVIOUS EXAMINATION PAPERS Previous examination papers for this module are posted on myunisa under the heading "Official Study Material". These papers merely serve as examples of how questions can be asked. Do not make the mistake to "spot" by studying only these papers as it can for certain lead to a fail mark in the examination. Also see TL102/3/2018, paragraph 2, "Study material for examination". You have to study the whole syllabus. You will be given no choice of questions in the exam paper all questions will be compulsory and all will have to be answered. No model answers for the long questions or answers to the multiple choice questions will be supplied. Please do not phone or us to enquire about it. * *** * 15
16 Section A (written questions) of the exam paper of October/November 2017 is supplied below. The entire paper also appears on myunisa under "Official Study Material". ECS2604 EXAM PAPER OCTOBER/NOVEMBER 2017: SECTION A Read all instructions CAREFULLY before answering the paper. The paper consists of TWO (2) sections: A and B. SECTION A (40 marks) Answer ALL the questions in this section. Section A counts 40 marks out of a grand total of 100 marks. A.1 (a) (i) Define the concept "discriminating monopsonist". (2) (ii) Define the concept "non-discriminating monopsonist". (2) (iii) Draw TWO diagrams with complete labels and explain and compare wage determination for a discriminating and a non-discriminating monopsonist by referring to these diagrams. (12) [16] (b) List any four factors that can lead to wage differentials. [4] [20] A.2 (a) (i) Define labour market flexibility. (3) (ii) Define atypical employment. (2) (iii) Name three types of atypical employment. (3) (iv) Name two advantages of atypical employment. (2) (v) Name two disadvantages of atypical employment. (2) [12] (b) One method of giving the unemployed an opportunity to participate in the economic activity of the country is to launch special employment programmes such as public works programmes. Discuss the arguments in favour of and against such public works programmes. [8] Total Section A: [40] ** *** ** [20] 16
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