EDEXCEL IAL Topical Past Paper Unit 3

3.4.2 Government intervention in the labour market

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section A

Section b

WEC13/01/Oct 2023

In 2022 Belgium had an unemployment rate of 5.5% and a vacancy rate of 4.8%.

Evaluate policies that a government could use to reduce the geographical immobility of labour and the occupational immobility of labour.
Refer to industries of your choice in your answer. [20 marks]

WEC13/01/June 2023

In 2015 Egypt’s Government introduced a maximum wage of $5 800 per month. This was 35 times greater than the minimum wage of public sector workers. Many Chief Executives were earning far more than this maximum wage at the end of 2014. As a consequence, 200 executives in the banking sector resigned.

Evaluate the impact of imposing a maximum wage.
Illustrate your answer with ran appropriate diagram(s). [20 marks]

WEC13/01/Oct 2022

In January 2022 the Government of Greece announced plans to raise the national minimum wage by 2% to €773 per month. However, many restaurant owners are worried about the impact of this increase in the minimum wage on their businesses.

Evaluate the likely microeconomic effects of an increase in the national minimum wage on an industry of your choice.
Illustrate your answer with ran appropriate diagram(s). [20 marks]