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SECTION A Answer ALL questions - Edexcel - A-Level Economics A - Question 1 - 2021 - Paper 1
Question 1
SECTION A 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 an... show full transcript
Worked Solution & Example Answer:SECTION A 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
To answer this part of the question, it's important to differentiate between normative and positive statements. Normative statements express value judgments and cannot be tested. In contrast, positive statements are factual and can be tested or validated.
- Statement 1 is factual, stating a trend related to migration and is therefore a positive statement.
- Statement 2 also provides an objective claim about engineers' employment, making it likewise positive.
Thus, the correct answer is D) Positive for both statements.
Step 2
Explain the likely impact of migration on the wage level of engineers in Poland.
Answer
The impact of migration on the wage level of engineers in Poland can be elaborated through several economic concepts:
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Supply of Labor Decreases: As engineers migrate abroad for better opportunities, the labor supply of engineers in Poland decreases. This may lead to increased competition among firms to attract the remaining engineers.
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Wage Rises: With a reduced supply of engineers, firms may raise wages to retain their engineers or attract workers from other sectors. This illustrates the law of demand and supply where a decrease in supply, all else being equal, typically leads to an increase in wage levels.
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Shortage of Engineers: As more engineers leave for higher-paying jobs in other countries, Poland may face a shortage in this sector, influencing firm hiring capacities.
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Market Equilibrium Impact: With firms offering higher wages to lure engineers, the market can eventually reach a new equilibrium where the demand for labor meets the decreased supply; this adjustment could stabilize wages at a new higher level than before migration occurred.