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Is economic development is based on goverment
Many governments--mainly unelected governments-aren't that interested in economic development. Giving valuable industrial franchises to nephews of dictator; making sure that members of your ethnic group are in key places to extort bribes; or taking foreign exchange which would have been spent importing productive machinery and equipment and using it in place of buy more modern weapons for the army--these can seem more attractive options. In absence of political democracy checks on a government that doesn't seek economic development are few.
Furthermore checks on government that do exist may not be helpful. In a non-democracy--or a shaky semi-democracy--there are two probable sources of pressure on government: riots in the capital and coups by the soldiers. Even a government which seeks only the best for its people in terms of economic growth would have to deal with these sources of pressure and will have to avoid coups by soldiers and riots in capital.
Provide an economic explanation of what you have shown in your diagrams above. Discuss what happens to Iceland's (1) level of economic output, (2) employment, (3) real wage rate,
Indifference curve term paper
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