For the following questions provide well explained answers.

(a) What are the main objectives of minimum wage legislation? (2 marks) (b) Discuss the effects of imposing a minimum wage rate above the market rate: (i) In a competitive market. (3 marks) (ii) Under conditions of monopsony. (3 marks) (c) What reasons limit the bargaining power of trade unions in developing countries? (8 marks) (d) Distinguish between the "substitution effect" and "output effect" on the member employed by a firm following a change in wage rate. (4 marks)(c) Suppose that you make the following observations in respect of n identical and statistically independent lives; v = time spent in the active state d = number of deaths r = number of retirements Assuming that lives are only observed to the earlier of death or retirement, show that the likelihood for / and u given these observations is: L( U, D ) = e-( #tu)vudu (d) Give formulae (without proof) for: the maximum likelihood estimator of the parameter u the asymptotic expected value of the estimator an estimate of the asymptotic variance of the estimator. [16] (ii) Suppose that you learn that retirements can only take place on a birthday, so that is the number of retirements at exact age 60. In addition to v, d and r you also observe: m = number of lives attaining exact age 60, where m S n. Suppose that any life attaining exact age 60 will retire with probability k , where 0