The government of an island economy can fund one project to improve cargo handling at its ports. It wants higher long-term productivity and more sustainable growth, but it is also concerned about output during the first year. Table 1 shows the expected effects of each project.
| Project | Expected change in output per worker after five years | Expected change in non-renewable fuel used each year | Expected change in port output in the first year |
|---|---|---|---|
| Battery-electric loading equipment | 7% increase | 35% decrease | 2% decrease |
| Larger diesel loading fleet | 10% increase | 18% increase | 3% increase |
| Training in efficient routing and loading | 5% increase | 4% decrease | 0.5% decrease |
Using Table 1, explain which project the government should choose.
189 exam-style questions on AQA GCSE Economics 2.2 Government objectives, covering 2.2.1a The main economic objectives, 2.2.1b Conflicts between government objectives, 2.2.1c Other objectives and ethical considerations, 2.2.2a The significance of economic growth, 2.2.2b Causes, costs, benefits and policies for growth, 2.2.2c GDP measures and calculations, 2.2.3a Measuring employment and unemployment, 2.2.3b Types and causes of unemployment, 2.2.3c Consequences and policies for unemployment, 2.2.4a What inflation is, 2.2.4b Measuring inflation with the CPI, 2.2.4c Causes, consequences and control of inflation, 2.2.5a Balance of trade and balance of payments, 2.2.5b Current account surpluses and deficits, 2.2.5c Policies to influence the balance of payments, 2.2.6a Income and wealth inequality in the UK, 2.2.6b Causes and consequences of inequality, and 2.2.6c Redistributing income and wealth. Each one has a worked solution and a mark scheme showing where the marks go.