Answer to Question #244071 in Microeconomics for Sebastian

Question

Mr Shane's old corolla emits a lot of carbon such that it contaminates the entire compound. This carbon emission state is closely related to two (2) depravities that you once learnt in class. You are mandated to briefly explain these 2 economic depravities that affect literally most Zambians.

Answer 1

The economic depravities that affect most Zambians include :Poverty and inequality and Public debt

(a)Poverty and inequality

Due to the high levels of financial insufficiency, there is no way to repair or change parts

Nearly half of Zambia's population are extremely poor, and the few above the poverty line are slowly slipping into poverty. This is because the Zambian government has debts and has failed to embrace social protective measures that can safeguard the poor. Subsequently, many citizens are being pushed below the poverty line, thus affecting the country's Gross Domestic Product.

(b) Public debt

The major economic depravities in Zambia is the country's reliance on unsustainable debt. Zambia debts have risen from 20% to that of 76% of its GDP in 2018. The consequences of these huge debts are putting a lot of pressure on the government to service foreign debts. As a result, the country has increased taxes, this has made many Zambians to be poorer. Consequently, some government infrastructure such as electricity network has been under the control of the government as a means of servicing foreign debts