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LEC812S - LABOUR ECONOMICS - 1ST OPP - NOV 2024 |
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nAmlBIA UnlVERSITY
OF SCIEnCE Ano TECHnOLOGY
FACULTY OF COMMERCE, HUMAN SCIENCES,AND EDUCATION
DEPARTMENT OF GOVERNANCE AND MANAGEMENT SCIENCES
QUALIFICATION: BACHELOR OF EMPLOYMENT AND LABOUR RELATIONS DEGREE
QUALIFICATION CODE: 08BERLH
LEVEL: 8
COURSE CODE: LEC812S
COURSE NAME: LABOUR ECONOMICS
SESSION: November 2024
DURATION: 3 HOURS
PAPER: THEORY
MARKS: 100
EXAMINER
FIRST OPPORTUNITY EXAMINATION QUESTION PAPER
Ms Martha Namutuwa
MODERATOR:
Mr. Elias Amunyela
INSTRUCTIONS
1. Answer ALL the questions.
2. Write clearly and neatly.
3. Number the answers clearly.
THIS EXAMINATION QUESTION PAPER CONSISTS OF 6 PAGES INCLUDING THE COVER
PAGE.
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READ THE QUESTIONS BELOW CAREFULLY AND ANSWER ALL THEM.
SECTION A
40 Marks
1.1 The graph below illustrates equilibrium in a perfectly competitive labour market. Make
use of the graph to answer questions that follow by choosing the correct answer among the
five options provided as possible answers.
10 Marks
0
NmnbN· of wo1·kers
1.1. 1 Which of the following is NOT correct?
(2 marks)
(a) Equilibrium takes place at point e.
(b) The equilibrium wage is W2.
(c) The equilibrium wage is Wl
(d) Number of workers employed at equilibrium is E1
(e) Equilibrium takes place where labour supply and demand curves intersect.
1.1.2 When the labour demand curve shifts rightwards, at the new equilibrium (2 marks)
(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.
dJ
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1.1.3 When the wage rate equals W1,
(2 marks)
(a) this wage is below the equilibrium wage.
(b) there is an excess demand for labour.
(c) Number of employed decreases compared to what happens at equilibrium
(d) unemployment does not take place.
(e) the number of employed remains unchanged at E1.
1.1.4 Which of the following statements is NOT correct? The informal sector includes
economic activity that mostly
(2 marks)
(a) makes use of simple labour-intensive technology.
(b) is legal, but is often unregistered.
(c) Is illegal and unregistered
(d) is unregistered and therefore also unregulated.
(e) is individually or family owned.
1.1.5 Productivity is traditionally measured as
(a) quantity of input/ quantity of output.
(b) quantity of output/quantity of input
(c) total revenue/ total cost.
(d) quantity of labour/ quantity of capital.
(e) None of the above is correct.
(2marks)
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1.2 Discuss the following concepts: Labour Force, Employment, Time- related
Underemployed and Outside the labour force?
10 Marks
1.3 Discuss several reasons that causes wage differentials in the labour Market 20 Marks
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SECTION B
60 Marks
Read the extract from the Labour Act No. 11 of 2007 below and answer the questions that
follow.
Minimum Wage
Minimum wage is regulated under the Labour Act in Namibia. The Minister for Labour has the
power to issue wage orders to decide the remuneration and working conditions for
employees in a particular industry or area after considering the recommendations of the
Wage Commission. The Wage Commission is formed either by the Minister, or upon the
request of a trade union and/or registered employers' organization. The function of the Wage
Commission is to investigate the conditions of employment including remuneration and
accordingly report back to the Minister. The Wages Commission is a tripartite body with
representation from workers and employers' organizations.
The Wage Commission's report must also consist of recommendations for minimum
remuneration, the basis upon which the remuneration is based, the deductions allowed or
disallowed, wage payment method, keeping of employment records, prohibition or
regulation of certain kinds of work etc. For updating the minimum wage, the Wage
Commission can recommend increase or decrease in the remuneration, and the Minister can
issue a new wage order accordingly. Minimum wages are generally set through the collective
agreements. There are separate collective agreements for agriculture and industry.
The Labour Act, 2007 in itself does not provide a list of factors to be taken into account for
the determination of minimum wage. Furthermore, the law does not require that the
minimum wage must take into account the living expenses of the employees. After 1 October
2018, minimum wage is increased by one percent additionally equal percentage to average
rise in inflation rate as described in Namibia Statistics Agency under Statistics Act 2011.
For the purpose of compliance, the labour inspector can assist employees in filing complaints.
Furthermore, the inspector may investigate and issue a compliance order where the employer
has failed to comply with the wage order. A person who fails to comply with the compliance
order is liable to a fine not exceeding N$ 10,000 or imprisonment for a period of up to two
years or both.
Adopted from Labour Act, 2007. Wage order for setting minimum wage and supplemental
minimum conditions of employment for domestic workers: Labour Act, 2007 (Government
Notice No. 258 of 2017).
2.1 Referring to the abstract above, discuss the mechanisms used to set minimum wages in
Namibia and South Africa.
20 Marks
2.2 Explain the collective bargaining process in relations to the conditions of employment and
the factors that determined the bargaining power outcomes
20 Marks
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2.3 Discussthe determination of wages in the monopsony and dual labour markets 10 Marks
2.4 Explain the reasons workers join trade unions
10 Marks
[TOTAL MARKS 100)