ECS1601 Assignment 7 (COMPLETE ANSWERS) 2024 - DUE 29 October 2024 - Course Economics IB (ECS1601)
ECS1601 Assignment 7 (COMPLETE ANSWERS) 2024 - DUE 29 October 2024; 100% TRUSTED Complete, trusted solutions and explanations.Ensure your success with us...
ECS1601 Assignment 7 (COMPLETE ANSWERS) 2024 - DUE 29 October 2024; 100% TRUSTED Complete, trusted solutions and explanations.Ensure your success with us...
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ECS1601
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,Question 1 (5 marks) Maximum word count: 100
words 1.1 Suppose you live in South Africa and
have the option to buy proudly South African
products or international brands. With reference to
the circular flow of goods and services and the
circular flow of income and spending between
households, firms, government and the foreign
sector, provide an explanation as to why it is better
to purchase the proudly South African products and
also explain the opportunity costs of buying
international items instead of those produced locally.
(5 marks)
Purchasing proudly South African products supports
local firms, boosting the circular flow of income and
spending within the economy. This enhances
household incomes and employment opportunities,
promoting economic growth. When consumers
choose local products, their spending circulates
among households and firms, reinforcing domestic
production. Conversely, buying international brands
leads to capital outflow, reducing local economic
activity and tax revenue. The opportunity cost of
, selecting international items includes potential job
losses and reduced local investment, ultimately
hindering South Africa's economic development.
Prioritizing local products fosters sustainability and
community welfare while strengthening the
national economy.
Question 2 (10 marks) Maximum word count: 150
words 2.1 The following question is based on the
passage below: NEWS Extract 2A After 2.0%
economic growth for 2022 as a whole, South Africa's
economy is now 0.3% bigger than it was in 2019
before the COVID-19 pandemic, Stats SA said,
adding that the expansion was smaller than a 3.5%
rise in the country's population over the same
period. Gross domestic product grew 0.9% year on
year in the fourth quarter, worse than forecasts for a
2.2% expansion. Source: Reuters (2023) < With the
aid of a diagram, explain how the money market in
South Africa will be affected by the abovementioned
changes in economic activity. The direction of any
changes should be clearly indicated by using
arrows. (4 marks) Page 4 of 7 ECS1601 |
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