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Labour Economics Question Paper

Labour Economics 

Course:Diploma In Labour Studies & Management (Labour Studies & Management)

Institution: Knec question papers

Exam Year:2005



1. (a) Explain SIX factors that may account for the low standards of living of workers in Less Developed Countries. (12 marks)
(b) Explain FOUR possible adverse effects of declining population in a country. (8 marks)

2. (a) Most Less Developed Countries prefer to use labour-intensive techniques of production in their agricultural sectors. Highlight the reasons that may account for this. (10 marks)
(b) Explain FIVE circumstances under which a trade union would be justified to demand higher wages for its members. (10 marks)

3. (a) The Kenya Government has enacted various labour laws aimed at safeguarding workers interests. Describe FIVE such legislations. (10 marks)
(b) Using the Phillip's Curve, explain the trade off that exists between the rate of inflation and the rate of unemployment in an economy. (10 marks)

4. (a) Explain FOUR reasons why a government may find it necessary to set up wage guidelines. (8 marks)<br (b) Describe SIX conditions that are necessary for the smooth functioning of collective bargaining. (12 marks)

5. (a) Explain FIVE measures that an organisation can take to develop its employees. (10 marks)
(b) Explain FIVE factors that limit geographical mobility of labour. (10 marks)

6. (a) With the aid of a diagram, explain how a monopsonist determines the equilibrium units of labour to employ and the wage rate to pay. (12 marks)
(b) Highlight the limitations of the marginal productivity theory of wage determination. (8 marks)

7. (a) One of the methods used to calculate wages is the piece-rate method. Explain FIVE advantages of this method. (10 marks)
(b) Explain FIVE factors that limit the growth of entrepreneurship in Less Developed Countries. (10 marks)




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