Adult education courses can benefit society as well as the people taking them. A government is considering two ways to increase enrolment in these courses. The table shows the estimated annual cost of each policy and the additional enrolments it is expected to produce.
| Policy | Estimated annual government cost | Expected additional enrolments |
|---|---|---|
| Free courses supplied by the government | £1,200,000 | 1,000 |
| Subsidy paid to course providers | £800,000 | 500 |
A survey found that 40% of adults eligible for the courses did not know that the courses could improve their career skills.
Calculate the estimated government cost per additional enrolment for each policy.
Using your answers to (a), explain which policy gives the government more additional enrolments for the money it spends.
Using the survey finding, explain why providing information could increase the effectiveness of either policy.
127 exam-style questions on OCR GCSE Economics 3.8 Limitations of markets, covering 3.8.1 Positive and negative externalities, 3.8.2 Policies to correct externalities, 3.8.3 Impact of externality policies, and 3.8.4 Costs and benefits of externality policies. Each one has a worked solution and a mark scheme showing where the marks go.