ECS1601
ASSIGNMENT 4 2025
UNIQUE NO.
DUE DATE: 15 SEPTEMBER 2025
, Economics IB (Macroeconomics I)
Question 1 [7 Marks] (Word Count = 100)
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.
Economic resilience in Mitchells Plain can be enhanced through two key interventions.
First, investment in small business development strengthens the circular flow model
by stimulating local production and consumption. When entrepreneurs receive financial
and training support, they create jobs, income circulates within households, and
demand for goods rises, driving sustainable economic growth. Second, infrastructure
and skills development ensures residents are equipped to participate in productive
sectors. Improved transport, digital access, and vocational training increase
employability, expand labour market participation, and attract private investment.
Together, these interventions reduce economic vulnerability and enhance long-term
community resilience.
Word Count: 100
Question 2 [18 Marks] (Word Count = 450)
Study the image showing Dr. David I. Ramadan’s X post and the background to
answer the questions 2.1 to 2.3.
2.1 Explain the economic concept illustrated in the post. (150 words)
The post highlights the economic impact of tariffs, which are taxes imposed on
imported goods. Tariffs are often used as protectionist measures to shield domestic
industries from foreign competition. However, as the tweet illustrates, such measures
can have adverse effects. When tariffs are imposed, the cost of imports increases,
leading to higher consumer prices for goods that may not have locally produced
ASSIGNMENT 4 2025
UNIQUE NO.
DUE DATE: 15 SEPTEMBER 2025
, Economics IB (Macroeconomics I)
Question 1 [7 Marks] (Word Count = 100)
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.
Economic resilience in Mitchells Plain can be enhanced through two key interventions.
First, investment in small business development strengthens the circular flow model
by stimulating local production and consumption. When entrepreneurs receive financial
and training support, they create jobs, income circulates within households, and
demand for goods rises, driving sustainable economic growth. Second, infrastructure
and skills development ensures residents are equipped to participate in productive
sectors. Improved transport, digital access, and vocational training increase
employability, expand labour market participation, and attract private investment.
Together, these interventions reduce economic vulnerability and enhance long-term
community resilience.
Word Count: 100
Question 2 [18 Marks] (Word Count = 450)
Study the image showing Dr. David I. Ramadan’s X post and the background to
answer the questions 2.1 to 2.3.
2.1 Explain the economic concept illustrated in the post. (150 words)
The post highlights the economic impact of tariffs, which are taxes imposed on
imported goods. Tariffs are often used as protectionist measures to shield domestic
industries from foreign competition. However, as the tweet illustrates, such measures
can have adverse effects. When tariffs are imposed, the cost of imports increases,
leading to higher consumer prices for goods that may not have locally produced
