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SECTION A Answer ALL questions - Edexcel - A-Level Economics A - Question 1 - 2021 - Paper 1
Question 1
SECTION A Answer ALL questions. Write your answers in the spaces provided. Some questions must be answered with a cross in a box ☒. If you change your mind about an... show full transcript
Worked Solution & Example Answer:SECTION A Answer ALL questions - Edexcel - A-Level Economics A - Question 1 - 2021 - Paper 1
Step 1
Which one of the following best describes the two statements above?
Answer
The correct option is D, as both Statement 1 and Statement 2 present objective information that can be tested and verified, hence they are considered positive statements. Normative statements often contain value judgments, which does not apply here.
Step 2
Explain the likely impact of migration on the wage level of engineers in Poland.
Answer
The migration of workers from Poland, particularly engineers, is likely to impact the wage level in several ways:
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Supply of Labour Decreases: As many engineers leave Poland for better opportunities and higher wages abroad, the supply of engineers in Poland decreases. This reduction can lead to an increased demand for the remaining engineers.
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Wage Rises: With fewer engineers available, firms may offer higher wages to attract and retain the remaining talent, leading to increased wage levels in the engineering sector.
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Shortage of Engineers: The migration can create a shortage of qualified engineers within Poland, exacerbating the problem of excess demand for skilled labor.
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New Equilibrium: As firms respond to this shortage by increasing wages, a new labor market equilibrium may emerge, with higher wage rates for engineers reflecting their scarce supply.
In summary, the likely outcome of increased migration would be rising wages for the remaining engineers in Poland.