Westhaven has high structural unemployment because many unemployed adults do not have the technical skills required by firms. Its electricity network is unreliable, which restricts firms' output.
The regional government has a budget of £60 million and must choose one of the following proposals. Any money not spent can remain available for other public services.
| Proposal | Government cost | Scale | Expected annual increase in output once fully effective | Earliest expected effects |
|---|---|---|---|---|
| Adult retraining programme | £45 million | 15,000 places, with 80% expected to complete | £2,000 for each worker who completes | 2 years |
| Electricity-network upgrade | £60 million | 5,000 firms expected to benefit | £6,000 per firm | 5 years |
Evaluate whether the government should choose the adult retraining programme rather than the electricity-network upgrade.
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.