A council offers adult literacy classes. It expects higher adult literacy to benefit learners and the wider community, so increased participation may create positive externalities. The council is considering funding extra class places or running an information campaign to promote places that are already available. Table 1 shows current and forecast participation and the annual cost of each option.
| Measure | Extra class places | Information campaign |
|---|---|---|
| Current number of participants | 600 | 600 |
| Forecast number of participants after policy | 1,500 | 950 |
| Estimated annual cost to the council | £660,000 | £90,000 |
Using Table 1, assess which policy is more likely to increase participation in the adult literacy classes and the positive externalities they create.
104 exam-style questions on AQA GCSE Economics 2.3 How the government manages the economy, covering 2.3.1a Fiscal policy and income and expenditure, 2.3.1b Fiscal policy and government objectives, 2.3.1c The government budget, 2.3.2a The meaning of monetary policy, 2.3.2b Uses of monetary policy, 2.3.3a Supply-side policies and their trade-offs, 2.3.3b Using supply-side policies, and 2.3.4 Policies to correct positive and negative externalities. Each one has a worked solution and a mark scheme showing where the marks go.