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:
Question 1 (5 marks)
In South Africa's circular flow of goods, services, income, and spending, purchasing locally made products
supports domestic businesses, generating income within the country. This recirculation of income benefits local
firms, creates jobs, and increases tax revenue, ultimately strengthening the economy. Conversely, buying
international brands causes money to flow out of the economy, reducing local spending. The opportunity cost
of choosing international brands is the potential loss of domestic growth, job opportunities, and economic
stability, as support for local industries decreases, hindering South Africa's economic resilience and
development.
Comprehensive Answers for
Semester 2, 2024 – Achieve Top
Grades
, Question 1 (5 marks)
Maximum word count: 100 words
1.1 Explanation:
Question 1 (5 marks)
In South Africa's circular flow of goods, services, income, and spending, purchasing locally made products
supports domestic businesses, generating income within the country. This recirculation of income benefits local
firms, creates jobs, and increases tax revenue, ultimately strengthening the economy. Conversely, buying
international brands causes money to flow out of the economy, reducing local spending. The opportunity cost
of choosing international brands is the potential loss of domestic growth, job opportunities, and economic
stability, as support for local industries decreases, hindering South Africa's economic resilience and
development.
