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Answer ALL questions - Edexcel - A-Level Economics A - Question 1 - 2021 - Paper 1
Question 1
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 answer, put... show full transcript
Worked Solution & Example Answer: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 answer is D) Positive Statement 1 Positive Statement 2. This is because both statements present objective observations about the migration patterns of workers and engineers in Poland since joining the EU, making them positive statements.
Step 2
Explain the likely impact of migration on the wage level of engineers in Poland.
Answer
The migration of over one million workers from Poland will likely impact the wage levels of engineers significantly.
Understanding the Impact
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Supply of Labour Decreases: With many engineers leaving for better opportunities abroad, there will be a reduced supply of engineers available in the domestic labor market. This scenario may lead to a labor shortage.
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Wage Behaviour: As the supply of engineers decreases, firms may experience excess demand for skilled engineers. In an effort to attract and retain talent, employers are inclined to offer higher wages.
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Market Adjustment: The interaction between reduced labor supply and increased demand for skilled workers will drive wages up, leading to a new equilibrium in the labor market.
Conclusion
In summary, the decrease in the number of engineers due to migration is likely to result in higher wages as firms compete for a smaller pool of qualified workers.