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The diagram below shows the number of passengers handled by the main Irish airports during Quarter 2 from 2017 to 2020 - Leaving Cert Economics - Question 16 - 2021
Question 16
The diagram below shows the number of passengers handled by the main Irish airports during Quarter 2 from 2017 to 2020. (a) (i) Using the data provided above, analy... show full transcript
Worked Solution & Example Answer:The diagram below shows the number of passengers handled by the main Irish airports during Quarter 2 from 2017 to 2020 - Leaving Cert Economics - Question 16 - 2021
Step 1
Using the data provided above, analyse the trend in the number of passengers handled by the main Irish airports between 2017 and 2020.
Answer
Between Q2 2017 and Q2 2019, there was a steady increase in the number of passengers handled at the main Irish airports, rising from just over 9 million to approximately 10 million. However, between Q2 2019 and Q2 2020, there was a significant decline, with passenger numbers dropping sharply from over 10 million to nearly zero due to various factors, likely including the impact of global events.
Step 2
Explain this statement in the context of the aviation data above.
Answer
The demand for labor in the aviation sector is derived demand, meaning that it originates from the demand for services within the industry. As more passengers travel, the need for support services such as pilots, security personnel, and cabin crew increases. Conversely, when passenger numbers fall, as seen in the reduction from Q2 2019 to Q2 2020, the demand for labor decreases as fewer personnel are needed to handle the operations.
Step 3
Outline two negative implications of this reduction in air passenger numbers on employment in the Irish economy.
Answer
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Decreased direct employment: Airlines have had to lay off numerous staff members including pilots, cabin crew, and airport handling staff due to decreased passenger numbers, leading to higher unemployment.
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Suppliers to the aviation industry: Industries that supply goods and services to airlines, such as catering companies and transport services, have also experienced reduced demand, resulting in further job losses in these sectors.
Step 4
Calculate the percentage increase in the minimum wage rate for Ireland between 2016 and 2021.
Answer
To calculate the percentage increase:
- Use the formula:
[ Percentage Increase = \frac{(New Value - Old Value)}{Old Value} \times 100 ] - Applying the values from the graph:
- Old Value (2016): €9.15
- New Value (2021): €10.20
- Calculation:
[ Percentage Increase = \frac{(10.20 - 9.15)}{9.15} \times 100 = 11.48
]
Thus, the percentage increase is approximately 11.48%.
Step 5
Explain one social reason and one economic reason why the Irish government has continuously increased the minimum wage.
Answer
Social reason: One key social reason is to introduce a more equitable distribution of income. By increasing the minimum wage, individuals on lower income levels receive a fairer wage, helping reduce income disparity.
Economic reason: An economic reason is to increase workers' standard of living. A higher minimum wage allows workers to have more disposable income, leading to greater consumer spending and potentially stimulating the economy.