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Read the following passage to answer question 60: 60. Based on the passage, which one of the following statements regarding supply factors and demand factors that affect economic growth, is true? [1] Creation of job opportunities for local communities will be positively influenced by demand factors. [2] The fact that companies operating in SEZs do not have to pay rent, is a demand factor that will affect economic growth. [3] Exports by firm’s operating in SEZs form part of supply factors. [4] Tax relief, capital investment and training are not supply factors, nor demand factors. Various countries, including South Africa, China and India, have established Special Economic Zones (SEZs) within their domestic economies. Firms that operate within these SEZs receive several incentives including tax relief, rent-free land, capital investment and training. This is done with the expectation to increase exports and to create job opportunities for local communities.
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