Answer to Question #233019 in Microeconomics for teopolina

Question

Namibia’s small population of about 2.3 million is a curse rather than a blessing”. Use the

arguments of the neoclassical economic theory to discuss this statement. 

Answer 1

Neoclassical economic theory is based on labor market. However, when the population is low, the demand and supply for labor is similarly affected. This comes as economic stability and development also relies on labor market, hence ruining more market services and income generating events from taking place.