More than 80% of Qatar's population are immigrants. Net immigration has helped to meet the country's demand for labour. As well as a shortage of workers, the country has a shortage of drinking water. The government has run public campaigns to stop people using their free supply of drinking water to fill their swimming pools and water their gardens. In 2016, the government increased its spending to increase the country's economic growth rate.

Mark scheme

Marking points from the official mark scheme (May/June 2018). The mark or mark type is shown in brackets.

1. [2] More people coming to live in the country than leaving the country to live elsewhere.
2. [2] The number of immigrants exceeding emigrants.
3. [1] The difference between immigration and emigration.
4. [1] People coming to live in the country (1).
5. [1] A shortage means demand exceeds supply
6. [1] price would rise
7. [1] more would be supplied
8. [1] due to the profit motive
9. [1] price signal sent to producers
10. [1] demand would also contract
11. [1] Demand likely to be price inelastic
12. [1] leading to large rise in price
13. [1] Demand for goods and services
14. [1] demand for labour is a derived demand
15. [1] Productivity/skills
16. [1] higher productivity will increase demand for labour
17. [1] Wage rates
18. [1] higher wage rates will reduce demand for labour
19. [1] Price of capital
20. [1] higher price may increase demand for labour if they are substitutes
21. [1] higher price will reduce demand for labour if they are complements
22. [1] Non-wage costs e.g. employer's contribution to pension scheme
23. [1] higher costs reduce demand for labour
24. [1] Taxes on employment of labour
25. [1] higher taxes reduce demand for labour
26. [1] Government employment subsidies
27. [1] higher subsidies will increase demand for labour
28. [1] Higher government spending will increase total (aggregate) demand
29. [1] higher total demand may encourage firms to increase output
30. [1] Higher government spending on education/training
31. [1] health
32. [1] may raise labour productivity
33. [1] increase productive potential/long run economic growth
34. [1] Higher government spending on infrastructure
35. [1] will reduce costs of production
36. [1] encouraging firms to expand
37. [1] Higher government spending on R & D
38. [1] would lower costs/raise productive potential
39. [1] Higher government spending may increase inflation
40. [1] this may make products less internationally competitive
41. [1] reducing net exports
42. [1] reducing output
43. [1] Higher government spending may not increase total demand if offset by e.g. lower consumer expenditure
44. [1] Higher government spending may not increase total demand if it is accompanied by higher taxation
45. [1] Higher government spending on education/training may not increase labour productivity if it does not raise the quality of education/training
46. [1] Higher benefits
47. [1] may reduce incentives to work
48. [1] Government spending may be spent wastefully/inefficiently