Africa Econ

Kemal manages an automobile factory. If he lives in a country that has a command economy

• . the government will probably tell him how many cars to build this month.
• . he will decide all by himself how many cars to build this month.
• the employees for the factory will tell him how many cars they feel lie making this month.
• he will probably examine sales figures before deciding how many cars to build this month.

In most countries, business and industry are owned by both individuals and the government. This kind is economy is known as 

• command 
• mixed 
• traditional
• pure command

How are economic decisions made in a market economy?

• Decisions are made by government officials.
• Decisions are made by individuals who decide what to produce and buy.
• Decisions are made based only on what can be produced in factories.
• Decisions are made based on custom and habit.

Which of the following is a characteristic of how Kenya’s economy is more market-based than command-based?

• The government has given more economic responsibility to business leaders.
• Farmers are not allowed to choose which crops they plant.
• Prices of goods are set by government officials.
• Foreign companies have located regional headquarters there.

In the country of Mauritania, most economic decisions are made based on supply and demand. Businesses are motivated by profits, and competition determines prices.  There is a small amount of government regulation, but consumers usually have a great deal of choice. Where would this country be positioned on the economic continuum found above?

• Point A
• Point B
• Point C
• Point D

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.

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.
  
  

• Since they both specialize, they do not make good trading partners.
• They do not use the same currency; therefore, it is impossible for them to trade.
• Because they specialize in different goods, they could make good trading partners.
• Petroleum is always worth more than South Africa’s exports so the countries should not trade.

Nigeria has a new industry that builds tractors for agriculture.  To protect this new industry from competition by lower priced foreign built tractors, the Nigerian government would use what type of economic trade barrier to raise the price of imported tractors?

• Embargo
• Standard of living
• Tariff
• Treaty

Why do countries issue tariffs and quotas on international trade?

• To punish other countries for breaking treaties
• To improve the stock market
• To keep the price of international goods low
• To encourage people to buy goods made by local businesses