BECS 342
KISII UNIVERSITY
    UNIVERSITY EXAMINATIONS

THIRD YEAR EXAMINATION FOR THE AWARD OF THE DEGREE OF BACHELOR OF BUSINES ECONOMICS AND STATISTICS
THIRD SEMESTER 2024/2025
[SEPTEMBER - DECEMBER, 2024

BECS  342 – ECONOMICS OF LABOR 
STREAM:  Y3 S3						             TIME:   2 HOURS

DAY:TUESDAY,9.00-11.00AM				DATE: 17/12/2024

INSTRUCTIONS:
1. Do not write anything on this question paper.
2Answer question ONE [compulsory] and any other THREE questions.

QUESTION ONE (25 MARKS)
Discuss the importance of the labour force in the economy. Address the following:
a) Define the labour force and explain its components. 		     (10 marks)
b) Analyze the significance of a well-functioning labour market for economic growth. 									       (10 marks)
c) Provide examples of how changes in the labour force can impact overall economic performance. 								(5 marks)
QUESTION TWO(15 MARKS)
Explain the concept of labour supply. In your response, include:
a) Define labour supply and identify the factors that influence it.    (5 marks)
b) Discuss how demographic trends can affect labour supply in a given economy.									         (5 marks)
c) Provide an example of a policy that could increase labour supply. (5 marks)

Question THREE (15 MARKS)
Examine the theories of labour demand. Your answer should cover:
a)Describe the key theories of labour demand and their assumptions. 
  (5 marks)
b) Analyze how changes in the economy can shift the demand for labour. 
(5 marks)
c) Provide a real-world example illustrating a shift in labour demand due to economic conditions.							         (5 marks)
QUESTION FOUR (15 MARKS)
Discuss wage determination in the labour market. In your answer, include:
a) Explain the factors that influence wage levels for different jobs.    (5 marks)
b) Differentiate between nominal wages and real wages.                    (5 marks)
c) Analyze the impact of minimum wage laws on the labour market. (5 marks)
QUESTION FIVE (15 MARKS)
Identify and analyze current trends and challenges in employment. Your response should cover:
a) Discuss at least two current trends affecting employment rates.     (5 marks)
b) Identify the challenges that workers face in the current job market. 
   (5 marks)
c) Suggest potential policy responses to these employment challenges. 
             (5 marks)