4.1.1 Name any TWO characteristics of public goods - NSC Economics - Question 4 - 2023 - Paper 1

South African workers can benefit from import substitution in several ways:

1. Increased Employment: By producing domestic alternatives to imported goods, local businesses can create more job opportunities for South African workers.

2. Development of Skills: Workers gain new knowledge and skills from engaging in the production of goods that were previously imported, enhancing their employability and expertise in the labor market.

The item that records an investment made in a specific asset with a fixed future value, such as gold, is net financial derivatives.

The item that caters for any omissions and errors in the balance of payments is known as unrecorded transactions.

Portfolio investment is defined as investments in financial assets, such as stocks and bonds, that are not made with the intention of controlling or managing the company. Instead, investors seek financial returns from these investments while maintaining a degree of liquidity.

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 are allocated by the International Monetary Fund (IMF) to help countries meet balance of payments needs and stabilize their economies.

To calculate the memo item A, we must sum all net investments excluding reserve assets:

• Net direct investment: R32,367 million
• Net portfolio investment: R-4,668 million
• Net financial derivatives: R-3,465 million
• Net other investments: R-5,394 million

Calculating:

egin{align*} A &= 32,367 - 4,668 - 3,465 - 5,394 \ &= 32,367 - 13,527 \ &= 18,840 ext{ million (R)} \end{align*}

Thus, the memo item (A) equals R18,840 million.