This is not actually Macro & Micro The class is called Economics of Essay

This is not actually Macro & Micro The class is called Economics of Developing Countries - Essay Example To achieve the desire to maintain standard of living, the country should focus on a) level of goods and services b) individuals purchase. The growth in population along with increase in economic growth, increase in GDP is not necessarily an indicator of improving standard of living based on per capita. The other factor, which may be taken into consideration, is the population growth, which has no match with the economic growth. The growth of population should match with the economic growth otherwise, it definitely defeats the very purpose of improvement of standard of living of the masses. A controversy prevails on the green revolution for sustainable improvement in the standard of living on the face of accelerated population growth. The Revolutionary period of industrialization in England, plays a vital role in increasing the per capita income by virtue of replacement of work force with the machines. If we look at the increased population of England during the era of 1700 to 1860 AD , we may find a lot about the major factors in increasing the production. The major factor of multiple production attributed to more production per worker combined with many more workers. 2. In developing countries, there may be both market failure and the government failure. True. The market failure depends on the failure of government in respect of manning the affairs of market. Unnecessary intervention by the concerned department of the government, will complex the issues. However, the government should take note of inefficient management in respect of allocation of goods and resources. Let the market forces manage the goods and resource in an efficient manner. Hence, the incumbent(s) of government should keep him/themselves away from intervening unnecessarily to ensure smooth function. 3. Transactions and information costs can prevent effective markets in developing countries especially in agriculture. True. The transaction cost provides a base in the design and impact of ICT, w hich has a far-reaching effect in the field of agriculture. The information system relied upon transaction costs approach. ICT can be used to cater the requirement of sustainable information thus empowers the information management. In taking the economic exchanges, ICT is an efficient tool for the transactional efficiency. There cannot be two opinions about the impact of ICT in managing the economic exchanges on a positive note. 4. Famine is more a problem of distribution than supply. False. At the time of famine, Government of Bengal’s strategy in line with Sen.’s philosophy was laudable. Well known Indian economist Sen., a noble laureate in Economic Science was keen in resolving the problems of down trodden. He was famous for his work on the causes of famine that provides practical solutions to prevent and limit the worst impact of shortages of food. Inability is to purchase food by the poor caused starvation. The starvation has nothing to do merely with distributio n and supply system only. Price control committee can control price to make it accessible to the general consumers and to prevent other market players to skim off more than their fare share. Further, public welfare scheme and supply of food through public distribution channel can play an effective role to lessen the gravity of famine. In addition, some degree of rationing under the mentioned scenario was desirable. Speculation and hoarding were two main factors of the famine. To provide population, the