An island economy's real GDP rises after its fishing fleet doubles its annual catch. Employment and tax revenue both rise, but fish are now being caught faster than the stocks can recover. Which assessment is best?
The rise in real GDP is not economic growth, because fish are caught rather than manufactured
Every resident's income must have risen, because the larger catch has increased the economy's total real output
The jobs and tax revenue are unlikely to last, because the catch will fall as the fish stocks run down
Real GDP has risen by less than reported, because the fall in fish stocks is subtracted from it
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.