(a) Discuss some examples of ways in which government interference with market f

Question

(a) Discuss some examples of ways in which government interference with market forces can lead to less efficient use of resources and to lower rates of economic growth. (b)How does the fact that one country is more densely-populated than another influence the types of agricultural technologies that will be most appropriate in each country? (c)If population (labor) growth and capital investment are potential sources of economic growth, why are factors such as technological progress and education necessary for continued growth?

Explanation / Answer

a)If markets and market systems are so efficient, why let the government tamper with their workings at all? Why not adopt a strict policy of what is called laissez-faire and allow private markets to operate without any government interference whatsoever? There are several reasons that economists and other social observers have identified, which can all be illustrated with some familiar examples. In most cases, however, the role of government is not to take the place of the marketplace, but to improve the functioning of the market economy. Further, any decision to regulate or intervene in the play of market forces must carefully balance the costs of such regulation against the benefits that such intervention will bring.

b) Our generation is experiencing the most profound demographic transition ever and Africa is at the center of it.

Africa

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