Answer to Question #271529 in Microeconomics for vtg

Question

a. Discuss South Africa as:

i. An upper middle income economy.

ii. A commodity-based economy.

iii. Small open economy.

iv. Dualistic economy. vs. safe-haven economy.

Answer 1

Upper middle income economy: World bank defines that GNI per capita income $4,046 and $12,535 (2021) then it will consider as the upper middle income economy.

A commodity-based economy: In this the crop is harvested makes no difference to the commodity economy. All like items are brought or sold as they have come from the same place. Indeed anything can be a commodity, currencies, minerals, crops, even spices like turmeric or all spice.

Small economy : It is a kind of economy that participate in the international trade but do not affect the world trade by it's policy.

Dualistic economy: It is a kind of economy in which the existence of two separate economic sector are in one country, which is divided by the different levels of development and different pattern of demand.

safe-haven economy: It is a term in which an an investment that is anticipated to maintain or increase in value during times of economic downturn.