1. Statement 1: Since Poland joined the European Union (EU) in 2004, over one million of its workforce have migrated to other countries in the EU - Edexcel - A-Level Economics A - Question 1 - 2021 - Paper 1
Question 1
1. Statement 1: Since Poland joined the European Union (EU) in 2004, over one million of its workforce have migrated to other countries in the EU.
Statement 2: Many... show full transcript
Worked Solution & Example Answer:1. Statement 1: Since Poland joined the European Union (EU) in 2004, over one million of its workforce have migrated to other countries in the EU - Edexcel - A-Level Economics A - Question 1 - 2021 - Paper 1
Step 1
Which one of the following best describes the two statements above?
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Answer
The correct answer is D: Positive Statement 1, Positive Statement 2. Both statements provide objective information that can be tested and verified, thus categorizing them as positive statements.
Step 2
Explain the likely impact of migration on the wage level of engineers in Poland.
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Answer
The migration of engineers from Poland is likely to impact the wage levels in several ways:
Supply of Labour Decreases: As engineers migrate, the supply of engineers in Poland decreases, which can lead to an increase in demand for the remaining engineers.
Wage Rises: With a reduced supply of engineers, firms may be compelled to offer higher wages to attract and retain talent. This can create upward pressure on wages overall.
Shortage of Engineers: The migration may result in a shortage of skilled engineers, which can hinder development in various sectors, prompting firms to compete for available engineers by offering better compensation.
Market Equilibrium Adjustments: As wages rise due to excess demand for labour, a new equilibrium in the labour market will be established. This adjustment reflects the balance between the decreased supply of engineers and the demand from firms needing skilled labour.