2.1 Answer the following questions - NSC Economics - Question 2 - 2021 - Paper 1
Question 2
2.1 Answer the following questions.
2.1.1 Name any TWO participants of the circular-flow model.
2.1.2 Why does public sector failure lead to social instability?
2... show full transcript
Worked Solution & Example Answer:2.1 Answer the following questions - NSC Economics - Question 2 - 2021 - Paper 1
Step 1
Name any TWO participants of the circular-flow model.
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Answer
The two participants of the circular-flow model are:
Households: Individuals or groups of people who provide factors of production.
Business Sector: Organizations that produce goods and services.
Step 2
Why does public sector failure lead to social instability?
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Answer
Public sector failure can lead to social instability for the following reasons:
Destabilization of Lives: Public sector failures often destabilize lives by compromising human rights, leading to significant unrest.
Community Discontent: Failure can cause communities to feel disgruntled, prompting them to make demands through protests and other forms of social action.
