Harbourton has weak productivity growth. Some workers lack digital skills, and firms report unreliable broadband connections. The government is considering a programme of adult digital retraining and investment in high-speed broadband.
The table shows the government's forecast for the programme.
| Measure | Current | Forecast after five years |
|---|---|---|
| Output per worker each year | £48,000 | £52,800 |
| Total government cost | £0 | £1.2bn |
State what is meant by productive capacity.
Explain how adult digital retraining could increase Harbourton's productive capacity.
Calculate the forecast change in output per worker as a percentage of its current value. Use information from the table.
Explain one reason why better broadband could support economic growth in Harbourton.
Using the information provided, evaluate the government's decision to spend £1.2 billion on adult digital retraining and high-speed broadband in Harbourton.
121 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.