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2.1.1 Name any TWO participants of the circular-flow model - NSC Economics - Question 2 - 2021 - Paper 1

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2.1.1 Name any TWO participants of the circular-flow model. 2.1.2 Why does public sector failure lead to social instability? 2.2 Study the table below and answer t... show full transcript

Worked Solution & Example Answer:2.1.1 Name any TWO participants of the circular-flow model - NSC Economics - Question 2 - 2021 - Paper 1

Step 1

2.1.1 Name any TWO participants of the circular-flow model.

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Answer

The two participants of the circular-flow model are:

  1. Households
  2. Government

Step 2

2.1.2 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:

  • The lives of people are destabilized, and their human rights can be compromised, leading to dissatisfaction.
  • Communities may become disgruntled and start protesting for their demands when they feel their needs are not met.

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