The government is choosing how to support the economy of a rural region. It can fund only one of the following policies.
| Policy | Evidence |
|---|---|
| Adult retraining in machine maintenance | 600 former hospitality workers are unemployed and food-processing firms have 450 unfilled machine-maintenance vacancies. |
| Upgrade the electricity network | 25 food-processing factories each lose an average of three hours of production per month because of interruptions to their electricity supply. |
Each policy would cost £4 million and take two years to complete.
Evaluate whether the government should spend the £4 million on adult retraining rather than on upgrading the electricity network.
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.