A government has £60 million to spend on one of four projects. Each project requires £60 million. The table shows the estimated annual increase in output from each project.
| Project | Estimated annual increase in output |
|---|---|
| Electricity-grid upgrade | £30 million |
| Technical training | £24 million |
| Road improvements | £16 million |
| Digital network | £21 million |
Which benefit would represent the opportunity cost of selecting the electricity-grid upgrade?
The benefit from road improvements, estimated at £16 million a year
The benefit from technical training, estimated at £24 million a year
The benefit from the electricity-grid upgrade, estimated at £30 million a year
The benefit from the digital network, estimated at £21 million a year
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.