Assignment 7 for ECS1601:
Comprehensive Answers for
Semester 2, 2024 – Achieve Top
Grades
, Question 1 (5 marks)
Maximum word count: 100 words
1.1 Explanation:
In the context of South Africa's circular flow of goods, services, income, and spending,
buying locally produced South African products supports domestic businesses, generating
income within the country. This enhances the flow of income back into local firms,
increases employment, and boosts government tax revenue, strengthening the economy
overall. On the other hand, purchasing international brands can lead to money outflow from
the economy, reducing local spending. The opportunity cost of choosing international
brands is the loss of potential domestic growth, job creation, and reduced economic
stability within South Africa due to diminished support for local industries.
Comprehensive Answers for
Semester 2, 2024 – Achieve Top
Grades
, Question 1 (5 marks)
Maximum word count: 100 words
1.1 Explanation:
In the context of South Africa's circular flow of goods, services, income, and spending,
buying locally produced South African products supports domestic businesses, generating
income within the country. This enhances the flow of income back into local firms,
increases employment, and boosts government tax revenue, strengthening the economy
overall. On the other hand, purchasing international brands can lead to money outflow from
the economy, reducing local spending. The opportunity cost of choosing international
brands is the loss of potential domestic growth, job creation, and reduced economic
stability within South Africa due to diminished support for local industries.
