Africa Econ/Geog Review 2016

Nigeria has an abundant supply of oil. How has oil affected the lives of the Nigerian people? 

•  A. The standard of living in Nigeria is higher than in any African nation. 
•  B. The majority of Nigerians are employed in oil related industries.  
• C. The abundance of oil has brought about honest leaders who work to help the people.  
• D. The majority of Nigerian people have not benefited by the abundance of oil.

What is South Africa’s main export?

• Oil
• Textiles
• Gold & Diamonds
• Agricultural products

Which of these would be an example of investing in capital goods?

• Upgrading the factories, tools, or technology in your country
• Providing better education for your citizens.
• Exploring for more crude oil in your country.
• Providing better healthcare for your citizens.

Here is a list of productive resources found at Wal-Mart. Which of them is a capital good?

• store manager
• cashier
• vegetables 
• building

When a country improves its factories, technology, and infrastructure (roads/ports/etc.), which of the following resources is it investing in?

• human capital
• capital goods
• natural resources
• currency

What is the relationship between education and training in a country and the country’s gross domestic product (GDP)?

• Countries with a high level of education and training have a higher gross domestic product.
• Gross domestic product only deals with the amount of investment in factories and machinery.
• The role of entrepreneurs is the only factor affecting gross domestic product.
• There is no relationship between education and training and gross domestic product.

What is the purpose of currency in a country’s economy?

• to make more profit from the price of goods
• to make trading easier between people and nations
• to prevent thieves from stealing products
• to increase the wealth of the upper class

Why is specialization so important in international trade?

•  Most countries only make one product.
• Specialization increases tariffs on international products.
• Specialization allows countries to make what they’re best at and trade for everything else.
• Specialization is not important for international trade.

Assume Kenya limits agricultural imports to no more than 16.1% of total agricultural GDP. Which term describes this type of trade barrier?

• tariff
• quota
• subsidy
• embargo

Nigeria has large deposits of oil and is currently exporting a significant quantity of oil. However, Nigeria has very few industries outside of oil and no other significant natural resources. How does this impact Nigeria's GDP?

• Makes the GDP more dependent on agriculture
• Makes the GDP more dependent on oil production
• Makes the GDP more dependent on tourism
• Makes the GDP inaccurate because there are too many natural resources in the country