Answer to Question #235225 in Economics for Sheehama Asser

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

The NeoClassical Theory is the extended version of the classical theory wherein the behavioral sciences gets included into the management. According to this theory, the organization is the social system, and its performance does get affected by human actions.

The basic idea in neoclassical distribution theory is that incomes are earned in the production of goods and services and that the value of the productive factor reflects its contribution to the total product.

Rather than focus on production, structures, or technology, the neoclassical theory was concerned with the employee. Neoclassical theorists concentrated on answering questions related to the best way to motivate, structure, and support employees within the organization.

A small population of a certain country creates a comparatively small market. This affects negatively both national investments and international economic status of this country. Therefore, Namibia’s small population of about 2.3 million is a curse rather than a blessing.