, ECS1601 Assignment 4
Semester 2 2025
DUE 15 September 2025
Use this document as a guide and for references to answer your assignment
Question 1 (7 Marks, 100 words)
With reference to the Circular Flow Model as well as economic growth, detail
and discuss two interventions that would most effectively support economic
resilience in Mitchells Plain.
Using the Circular Flow Model, income and spending circulate between
households, firms, government and the financial sector. In Mitchells Plain, one
effective intervention is stimulating local entrepreneurship and small businesses
through micro-loans, training and procurement from township firms. This raises
household incomes and increases the flow of spending back into the community,
boosting aggregate demand and local production. A second intervention is public
investment in infrastructure and skills (e.g. transport links, digital access,
vocational training). This improves productivity and employability, drawing more
people into the labour market, which expands the economy’s capacity and
strengthens long-term economic growth and resilience.
Question 2 (18 Marks, 450 words)
Study the image showing Dr. David I. Ramadan’s X post and the background
information below to answer Questions 2.1 to 2.3:
Background:
In April 2025, US President Donald J. Trump implemented reciprocal tariffs for
countries that traded with the USA. This aimed to address the United States’ $1.3
trillion (~R22.84 trillion) trade deficit.
Amongst the countries that were levied the highest tariffs included South Africa’s
neighbour, the Kingdom of Lesotho (50% tariff). In addition, the Republic of
South Africa was also levied a tariff of approximately 30%, which came into
effect in August 2025.
Semester 2 2025
DUE 15 September 2025
Use this document as a guide and for references to answer your assignment
Question 1 (7 Marks, 100 words)
With reference to the Circular Flow Model as well as economic growth, detail
and discuss two interventions that would most effectively support economic
resilience in Mitchells Plain.
Using the Circular Flow Model, income and spending circulate between
households, firms, government and the financial sector. In Mitchells Plain, one
effective intervention is stimulating local entrepreneurship and small businesses
through micro-loans, training and procurement from township firms. This raises
household incomes and increases the flow of spending back into the community,
boosting aggregate demand and local production. A second intervention is public
investment in infrastructure and skills (e.g. transport links, digital access,
vocational training). This improves productivity and employability, drawing more
people into the labour market, which expands the economy’s capacity and
strengthens long-term economic growth and resilience.
Question 2 (18 Marks, 450 words)
Study the image showing Dr. David I. Ramadan’s X post and the background
information below to answer Questions 2.1 to 2.3:
Background:
In April 2025, US President Donald J. Trump implemented reciprocal tariffs for
countries that traded with the USA. This aimed to address the United States’ $1.3
trillion (~R22.84 trillion) trade deficit.
Amongst the countries that were levied the highest tariffs included South Africa’s
neighbour, the Kingdom of Lesotho (50% tariff). In addition, the Republic of
South Africa was also levied a tariff of approximately 30%, which came into
effect in August 2025.
