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 engineers have left Poland for higher paid jobs in other countries in the EU. (a) Which one of the following best describes the two statements above? A Normative B Normative C Positive D Positive (b) Explain the likely impact of migration on the wage level of engineers in Poland.

A-Level Edexcel Economics A International Economics: 1 Statement 1: Since Poland joi

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-Edexcel-A-Level Economics A-Question 1-2021-Paper 1.png

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: Both statements are positive. A normative statement expresses a value judgment and cannot be tested, while a positive statement is objective and can be verified. Since both Statements 1 and 2 can be tested through observation of migration patterns and labor market statistics, they are classified as positive.

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 to other countries can have several impacts on the labor market:

Supply of Labor Decrease

The departure of approximately one million workers, including a significant number of engineers, leads to a decrease in the supply of labor.

Wage Increases

With fewer engineers available in Poland, firms may face increased demand for the remaining workforce. This can result in excess demand, causing wages for engineers to rise as firms are willing to offer higher payments to attract talent.

Shortage of Engineers

The migration wave can create a noticeable shortage of engineers in Poland, subsequently impacting project timelines and productivity, further necessitating wage increases.

Market Equilibrium

New labor market equilibrium may be achieved where wages increase until the quantity of labor supplied matches the demand, balancing the market.