African Economy Milestones Review

In a traditional economy, how are economic decisions made?

• custom and habit
• government leaders
• consumers and planners
• combinations of consumers and producers

Which would be a problem for a community with a traditional economy?

• People in the village find ways to make their products more efficiently.
• The price of advanced electronics, like computers, begins to rise rapidly.
• People in the country begin to want and need products that cannot be made or traded locally.
• Older villagers take on younger workers to learn to make products they have been producing.

In a command economy, how are economic decisions made?

• custom and habit
• government planners
• consumers and the market
• combination of consumers and planners

Which would be a problem in a command economy?

• People would get rich
• Local crafts would be produced before manufactured goods.
• Individual business people would risk their own money to produce goods.
• A worker trying to start a new business on his or her own would need permission.

In a market economy, how are economic decisions made?

• custom and habit
• government planners
• consumers and the market
• individual starting new businesses 

Who takes on the financial risk in starting a new business in a market economy?

• consumers
• government planners
• individual business people
• combination of planners and investors

Why are the most modern economies referred to as mixed economies?

• Poverty is always highest in countries with market economies.
• Government planners do not know how to handle economic problems.
• Products made by traditional economies have no markets in the modern world.
• Most countries have aspects of all three economic types at work in their economies.

Why do most economies in the world today operate somewhere in between a market economy and a command economy?

• Government control always makes a market economy profitable.
• Most consumers prefer government control to a free market system.
• Government control of some aspects of the economy has never been successful in the modern world.
• Most economies have found they need a mix of free market and some government control to be successful and protect consumers.

What is South Africa's main export?

• oil 
• textiles
• gold and diamonds
• agricultural products

Which country has the largest per capita GDP?

• Nigeria
• South Africa
• GDP information is not available
• The GDP's are almost all the same