ECS1601 Assignment 4 2025 Due 15 September 2025

Description

ECS1601 Assignment 4 2025
DUE 12 SEPTEMBER 2025
Question 1 [7 Marks]

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?

In the circular flow model, economic resilience in Mitchells Plain can be supported
through government investment in skills development and support for local
entrepreneurship. First, training programmes for youth create stronger household
participation in the factor market, increasing employability and income flows. This
reduces leakages such as unemployment and increases consumption (C), which
stimulates firms (I). Second, supporting small businesses through grants or low-interest
loans strengthens local production, boosting capital formation and job creation. These
interventions act as injections (G and I) into the circular flow, sustaining growth, reducingpoverty, and enhancing long-term economic stability in the community. (ECS1601/1,