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In the Government’s Budget 2016, the national minimum wage was increased from €8.65 to €9.15, an increase of 50 cent per hour - Leaving Cert Business - Question 2(A) - 2016
Question 2(A)
In the Government’s Budget 2016, the national minimum wage was increased from €8.65 to €9.15, an increase of 50 cent per hour. Discuss the different ways in which t... show full transcript
Worked Solution & Example Answer:In the Government’s Budget 2016, the national minimum wage was increased from €8.65 to €9.15, an increase of 50 cent per hour - Leaving Cert Business - Question 2(A) - 2016
Step 1
Discuss how the setting of a legal national minimum wage impacts workers
Answer
The increase in the national minimum wage can protect workers by ensuring they receive a baseline income. However, some employers may reduce hiring due to the rise in costs, potentially leading to unemployment. On the flip side, a higher wage may motivate more workers to enter the labour market, as it boosts disposable income and consumption.
Step 2
Examine the role of Government in setting tax rates for PAYE/PRSI/USC
Answer
The government sets tax rates for PAYE (Pay As You Earn), PRSI (Pay Related Social Insurance), and USC (Universal Social Charge), which can serve as incentives or disincentives for employment. Lower rates can encourage job creation and boost the disposable income of workers, incentivizing them to join the workforce.
Step 3
Analyze the impact of government investment in education
Answer
Government investment in third-level education provides students with skilled training, enhancing their employability. The waiving of tuition fees for students fosters a highly educated workforce, increasing the supply of qualified individuals available for employment.
Step 4
Discuss the function of Government Agencies like Enterprise Ireland
Answer
Agencies such as Enterprise Ireland and Local Enterprise Offices (LEOs) play crucial roles in fostering business growth. They provide financial assistance, including grants to small businesses, which can directly lead to job creation and increased employment in local areas.
Step 5
Consider the role of IDA Ireland in attracting foreign investment
Answer
IDA Ireland is instrumental in attracting multinational companies to Ireland by offering incentives. This foreign investment can lead to job creation, providing employment opportunities and aiding economic growth in the region.
Step 6
Evaluate the influence of regulatory frameworks on business practices
Answer
The Government regulates industries through laws such as Employment Law and Health & Safety regulations. A stable regulatory framework can encourage business expansion and attract investments, thereby increasing the demand for labor.
Step 7