a). The ideal situation for every economy will be for the forces of demand and supply or the free market to allocate resources efficiently. However, the market sometimes fails to allocate resources efficiently and this may necessitate the government to intervene in order to regulate prices of some essential commodities and services. “Government intervention in the free market also inevitably gives rise to problems” Discuss this statement with reference to minimum wage legislation and rent controls in Ghana.
(1b). State three (3) economic usefulness of elasticity of demand in managerial decision making.
(1c). Explain why the price elasticity of demand for Milo is greater than the price elasticity for beverages in general. What general rule can be inferred from this?

(2a). Discuss five (5) reasons for and against the existence of monopolies
(2b) Explain five (5) characteristics of a perfectly competitive market

(3a). Explain five (5) reasons why Ghana’s debt ratio is so high and suggest five (5) practical ways to address this canker.
(3b). Discuss the assertion that “unemployment can be seen as both an economic and a social problem”. 

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1a The ideal situation for every economy will be for the forces of demand and supply or the free market to allocate resources efficiently However the market sometimes fails to allocate resources effic... View the full answer