In a simplified island economy, fishing boats and hotel stays are the only goods and services produced. Year 1 is the base year.
| Product | Year 1 price | Output in Year 1 | Output in Year 2 |
|---|---|---|---|
| Fishing boats | £40,000 per boat | 100 boats | 110 boats |
| Hotel stays | £100 per stay | 60,000 stays | 58,000 stays |
Which statement about economic growth between Year 1 and Year 2 is correct?
Economic growth occurred, because the value of output at Year 1 prices rose.
Negative growth occurred, because the total number of boats and hotel stays produced fell.
Whether growth occurred cannot be identified without knowing the Year 2 prices.
Negative growth occurred, because hotel stays made up most of the value of output and fell.
78 exam-style questions on OCR GCSE Economics 3.1 Economic growth, covering 3.1.1 What is economic growth, 3.1.2 Calculate economic growth using GDP, 3.1.3 Explain how growth is measured, 3.1.4 Analyse GDP data, 3.1.5 Determinants of economic growth, and 3.1.6 Costs and benefits of economic growth. Each one has a worked solution and a mark scheme showing where the marks go.