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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 part of the economy is run by state bodies or government departments, which are responsible for providing services to citizens and are funded by public resources. An example of an occupation in this sector is a teacher, who educates students in schools funded by the government.
Private Sector: This sector comprises businesses that are operated for profit by private individuals or groups and is not controlled by the government. An example of an occupation in this sector is a cashier at Tesco, a supermarket chain.
Step 2
State and explain one economic reason why employees are currently seeking wage increases.
Answer
One significant economic reason employees are currently seeking wage increases is economic growth. As the economy expands, workers want a greater share of the increased wealth. They feel justified in demanding higher wages to keep pace with rising living costs and improvements in the general standard of living.
Step 3
Discuss one possible economic disadvantage for the Irish economy if employees in both the public and private sectors receive wage increases.
Answer
Inflation could be a potential economic disadvantage arising from wage increases in both sectors. With higher wages, businesses may face increased costs, which can lead them to raise prices for goods and services. This can trigger a cycle of inflation, where the purchasing power of wages diminishes, negatively impacting overall economic stability and growth.
Step 4
State and explain two economic reasons why different wages are paid for different jobs.
Answer
Firstly, workers' skills and experience play a crucial role in wage differentiation. Jobs requiring specialized skills or extensive training often command higher pay due to the expertise needed. For example, a doctor receives a higher rate of pay compared to a nurse due to the years of training and education involved.
Secondly, the nature of the job, including its conditions and risks, can influence wage levels. Jobs that entail higher risks or unpleasant conditions may offer higher pay to attract workers. For instance, construction roles might pay more because of the physical dangers involved.
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
One measure the Irish Government could take is to improve government services and develop infrastructure. By enhancing amenities such as broadband internet availability and public transport options, Ireland would become an attractive place for emigrants to return to.
Another measure might involve providing grants or subsidies to firms that specifically hire returnees. This financial support could encourage businesses to actively seek out and employ those who have emigrated.