A coastal region experiences frequent interruptions to its electricity supply. It also has unemployed adults whose qualifications do not match the skills required by local employers. The government has proposed two supply-side policies.
Table 1 shows the forecast effects of the proposals.
| Proposal | Government cost | Forecast effect once fully implemented | Years until full effect |
|---|---|---|---|
| Electricity network renewal | £3.6bn | Annual productive capacity rises by £1.2bn | 6 |
| Adult conversion courses | £0.9bn for 30,000 adults | Annual productive capacity rises by £18,000 per participant | 3 |
Analyse, using the forecasts in Table 1, whether the adult conversion courses are likely to make a greater contribution to long-run economic growth for each £1 of government spending than the electricity network renewal.
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.