10 11
b) Illustrate and explain ONE of the three methods you mentioned in Question 9 a) (see Fig. 14-8, pp. 288 – 291).
(5)
Illustrate (Fig. 14-10, p. 296) and explain the impact of the imposition of a minimum wage in a perfectly competitive labour market.
(4)
“Workers in South African factories are exploited. The government must introduce a minimum wage to rectify this situation.” Comment on this statement. Use a diagram to assist you with your assessment of the aforementioned statement.
(6)
12
Name and explain THREE reasons why wages differ in the market (pp. 298 – 301).
13
Give the equation for calculating the LFPR (p. 304).
(1)
14
UPPIEland uses the same method to calculate the Labour Force Participation Rate as we do in South Africa. Working-age people employed in the formal sector 7 271 Working-age people employed in the informal sector 4 124 Working-age people without jobs who want jobs 4 369 Working-age people without jobs who don’t want jobs 13 394 Total female population aged 15 – 64 years 15 408 Total male population aged 15 – 64 years 13 998 Total population of UPPIEland 46 686 Calculate the Labour Force Participation Rate for UPPIEland.
(3)
15
Name and explain any THREE factors which determine the LFPR (p. 304).
(3 X 2 = 6)
(3 X 2 = 6)
Note: “The informal sector is made up of those firms that don’t register themselves as employers or taxpayers, so that the government is not aware of them. Examples include hawkers, shebeen owners, backyard mechanics or shoe-shiners” (Hartzenberg, Richards, Standish, Tang, Wentzel and Hutchings 2005:103). “The formal sector is made up of firms that are legally registered, comply with the relevant laws and regulations and pay income tax” (Marx, van Rooyen, Bosch and Reynders 1998:91). 16
Name THREE reasons why people engage in informal sector activities (p. 305).
(3)
CHAPTER 15: THE MONETARY SECTOR (pp. 313 – 335) Learning Outcomes This chapter introduces money, the financial sector and monetary policy. The learning outcomes are the ability to: • Define money; • Describe the functions of money; • Define M1, M2 and M3; • Describe the main functions of the South African Reserve Bank; • Explain the demand for money; • Explain how the supply of money is determined; and • Explain the basic instruments of monetary policy. Written assignment questions / Tutorial questions / Self-study questions: 1 Define money and list its functions (pp. 314 – 315).
(4)
2
Name and explain THREE functions of money (pp. 314 – 315).
(3)
3
A R650 price tag on a pair of running shoes is an example of money functioning as a __________.
(1)
Economics I - Study Guide
Page 31
Revised: 2007