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The Irish Government is facing demands for wage increases from employees in the public sector - Leaving Cert Economics - Question b - 2017
Question b
The Irish Government is facing demands for wage increases from employees in the public sector. Employees in the private sector are also seeking wage increases. (i) ... show full transcript
Worked Solution & Example Answer:The Irish Government is facing demands for wage increases from employees in the public sector - Leaving Cert Economics - Question b - 2017
Step 1
Explain each of the underlined terms and state one example of an occupation in each of the sectors above.
Answer
Public sector: This sector consists of organizations controlled by the government that provide various services to the public. An example of an occupation in this sector is a teacher who works in a publicly funded school.
Private sector: This sector is made up of businesses owned and operated by private individuals or groups, aiming to make profits. An example of an occupation in this sector is a Tesco worker who is employed at a privately owned supermarket.
Step 2
State and explain one economic reason why employees are currently seeking wage increases.
Answer
One economic reason for employees seeking wage increases is economic growth. As the economy improves, profit margins for businesses rise and workers expect to share in this growth. This creates a demand for higher wages as employees want to ensure their salaries keep pace with the increasing cost of living and the general prosperity of the economy.
Step 3
Discuss one possible economic disadvantage for the Irish economy if employees in both the public and private sectors receive wage increases.
Answer
A possible economic disadvantage is inflation. If wages increase significantly, businesses may have to raise prices to cover the higher labor costs. This leads to overall inflation, eroding consumers' purchasing power and potentially resulting in higher interest rates. Additionally, increased costs may discourage investment in the Irish market, affecting long-term economic growth.
Step 4
State and explain two economic reasons why different wages are paid for different jobs.
Answer
Different Skills: Jobs that require specialized skills typically offer higher wages to attract qualified candidates. For instance, professions like doctors and engineers are compensated more due to the extensive education and training required.
Nature & Conditions of the Job: Certain jobs may involve higher risks or unpleasant working conditions, resulting in higher pay. For example, roles in construction or mining often offer better salaries to offset the danger associated with these occupations.
Step 5
The Irish Government is trying to encourage Irish emigrants to return and work in Ireland. Suggest two measures that the government could take to encourage this.
Answer
Improve government services/develop infrastructure: The government can enhance public services and infrastructure, which may attract expatriates back to Ireland, making it more appealing to settle and work there.
Training and Educational Programs: The government could offer incentives for training programs that upskill returning emigrants, matching their skills with the demands of the local job market, thereby facilitating their reintegration into the workforce.