A government funds transport infrastructure by reducing spending on education. The new roads raise output quickly, but skills shortages worsen later. Which conclusion is most accurate?
Infrastructure cannot be a determinant of growth
The policy must raise long-run growth because current GDP increased
The reduction in education has no opportunity cost if roads are completed
Short-run growth may rise, while the opportunity cost could weaken future productivity and growth
31 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.