Lanzarote, an island in Spain, once had very high poverty levels. Yet the growth of tourism has cut unemployment by a large amount. The government is trying to attract more workers to the island by relying on non-wage factors. Low taxes in Lanzarote also make the island attractive to workers. Labour mobility in the island’s economy has increased as well.
(a)[2]
Identify two non-wage factors that can influence a worker’s choice of job.
(b)[4]
Explain how unemployment can lead to poverty.
(c)[6]
Analyse the factors that influence the mobility of labour.
(d)[8]
Discuss whether low taxes are beneficial for an economy or not.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “security of employment” …