Extract 1: Southvale productivity plan Southvale has slow productivity growth, unfilled technical vacancies and congested roads. The government proposes training grants and a new freight rail link.
| Measure | Current | Forecast after plan |
|---|---|---|
| Output per worker index | 100 | 108 |
| Technical vacancies | 24,000 | 13,000 |
| Government cost | £0 | £6.4bn |
Explain how training grants are a supply side policy.
Using Extract 1, calculate the percentage fall in technical vacancies.
Analyse how the freight rail link may increase Southvale's economic growth.
State two possible supply side policies other than training.
Explain one opportunity cost of the £6.4 billion plan.
Evaluate whether the plan is likely to improve Southvale's economy.
29 exam-style questions on OCR GCSE Economics 3.7 Supply side policies, covering 3.7.1 What are supply side policies and 3.7.2 Costs and benefits of supply side policies. Each one has a worked solution and a mark scheme showing where the marks go.