Africa Economics

In a market or mixed market economy, how is the question "What to produce" answered?

• dependent on the government's agenda
• dependent on what the business owner likes to do 
• dependent on what the consumer needs or wants 

Nigeria's economy relies on the exportation of what natural resource?

• precious minerals 
• crude oil
• fruits and veggies

Why does specialization make trade between countries easier?

• There will always be a steady supply of goods on the market so trade is not needed.
• Countries can produce what they make best and trade with others for what they need.
• A country’s economy will never go through a difficult time if they specialize in a good.
• The competition between countries will not exist.

Why is it important for nations to have a system to convert from one currency to another?

• Converting currency makes it possible to buy and sell goods between countries with different types of money.
• The dollar is the most valuable currency in the world.
• Converting currencies makes goods cost less.
• Banks are not able to handle different types of currencies.

Scenario: The US refuses to trade with any countries that support terrorism. What trade barrier is this?

• Tariff
• Quota
• Embargo
• Physical trade barrier

Tariffs and quotas are alike because they both __________________.

• restrict or limit trade between countries.
• completely stop trade between countries.
• increase trade between countries.
• make trading a lot easier between countries.

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.

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

Although both Nigeria and South Africa have an abundance of natural resources, a great number of people live in poverty. Why is this true?

• There are no educated people in either of these countries to raise the standard of living.
• Nigeria and South Africa have been at war with each other for 30 years which has prevented growth of the economy.
• Political leaders have failed to use natural resources to benefit all citizens.
• Both countries are ruled by white minorities that prevent all people from making a good income.

Which are MOST important in a command economy?

• Traditions and habit    
• Government planners  
• Consumers and the free market
• A combination of consumers and government planners