Action and reaction forces are illustrated by how rockets operate, where the rocket pushes fuel out, and the fuel exerts an equal and opposite force back on the rocket. The high-pressure gases expelled at high speed from the rocket's combustion chamber create thrust, enabling the rocket to rise. Initially, the process is inefficient due to the significant force with minimal altitude gain, but efficiency improves as speed increases. It's noted that rockets do not require ground support to function, as the gases can push against the vacuum of space. Historical misconceptions about rocket propulsion in space were corrected after significant advancements in space travel.