WAEC Economics 2010 Theory — Question 15

Model answer

Reasons why government participates in economic activities include: (i) Provision of essential commodities which private individuals may not produce because they are not profitable. (ii) Provision of commodities which require huge capital outlay and which private investors cannot undertake. (iii) To create jobs. (iv) To protect the citizens from exploitation by checking private monopolists. (v) For security purposes: private production of some goods are a threat to national security (any four).