Photo AI
4.1 Answer the following questions - NSC Economics - Question 4 - 2023 - Paper 1
Question 4
4.1 Answer the following questions. 4.1.1 Name any TWO characteristics of public goods. 4.1.2 How can South African workers benefit from import substitution? 4.2 ... show full transcript
Worked Solution & Example Answer:4.1 Answer the following questions - NSC Economics - Question 4 - 2023 - Paper 1
Step 1
Name any TWO characteristics of public goods.
Answer
Public goods are characterized by:
- Non-excludability: Individuals cannot be effectively excluded from use, meaning that no one can be prevented from benefiting from the good.
- Non-rivalrous consumption: One person's use of the good does not reduce its availability to others, allowing multiple individuals to use it simultaneously without depletion.
Step 2
How can South African workers benefit from import substitution?
Answer
Import substitution can lead to increased employment opportunities as South African workers are engaged in the production of goods previously imported. This can enhance local industries, promote skill development, and minimize dependency on foreign products, leading to stronger domestic economic growth.
Step 3
Step 4
Step 5
Briefly describe the term portfolio investment.
Answer
Portfolio investment refers to investments in financial assets such as stocks and bonds that do not give the investor significant control over the companies in which they invest. This form of investment primarily aims at financial return rather than control.
Step 6
Explain the purpose of Special Drawing Rights (SDR) allowances in reserve assets.
Answer
The purpose of Special Drawing Rights (SDR) allowances in reserve assets is to provide liquidity to the global economy by supplementing member countries' official reserves. SDRs can be exchanged among member countries to help finance balance of payments deficits and stabilize their economies.
Step 7