What challenges may an under populated country experience?

Explain the challenges that an under populated country may experience.

(i) Lack of specialization-People in an under populated country may not engage in specialization leading to production of poor quality goods.

(ii) Reduced phase of economic development for under populated countries, there is less resources. This reduces peoples creativity and innovation that may retard economic growth and development.

(iii) Limited labour supply-A small population may not provide enough labour for production.

(iv) Limited market- A small population may not provide enough market for goods and services.
Some business may end-up closing.

(v) Under-utilization of resources-Resources in the country may be left idle because of lack of people to use them.

(vi) Uneconomical to provide public utilities-The available population may be scattered all over the country making it uneconomical for the government to provide public utilities.

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maurice.mutuku answered the question on July 19, 2017 at 12:41

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