The government of Bellmere is comparing three plans intended to increase national output. The forecasts are for the first year after each plan is introduced. Figures for output are measured at fixed prices. Each industry’s workforce and total hours worked are expected to remain unchanged, and no other changes in output are forecast.
| Industry | Planned change | Current annual real output (£bn) | Expected increase in output per worker (%) |
|---|---|---|---|
| Marine engineering | Firms buy additional standard machine tools | 55 | 4 |
| Care services | Employees complete job-related training | 100 | 3 |
| Arable farming | Firms adopt a newly developed production process | 30 | 8 |
Analyse which of the three plans is likely to make the greatest contribution to Bellmere’s economic growth in the first year. Use the data in your answer.
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.