Africa's Economy Test

Gross Domestic Product
is a measure of the total value of all.....

• Consumer income in an economy over a period of time
• Capital accumulation in an economy over a period of time.
• Sales in an economy over a period of time.
• The goods and services produced in an economy over a period of time

Why is a system of currency exchange necessary for international trade?

• The people buying goods want to be paid in gold and silver
• To pay for goods purchased from different countries
• All currencies are worthless on the world market
• Most goods must be paid in US dollars 

South Africa specializes in ____.

• Oil
• Diamonds
• Uranim
• Technology

Nigeria specializes in _____.

• Oil
• Diamonds
• Gold
• Technology

A person who comes up with a product or service, and finds the money and time to produce this new product.

• Entrepreneur
• Incentive
• Specialization
• Barter

Capital goods are 

• all the training workers undergo to be better at their jobs
• all of the factories, machines, technologies, buildings, and property needed by businesses to operate
• all the items that are grown and developed by nature
• people who invest money to start a business. 

How do countries benefit from having natural resources? 

• Countries that have a lot of natural resources are able to use them to produce goods & services at a lower price than those who do not
• Countries that have a lot of natural resources are not capable of selling these items to other countries.
• Countries that have a lot of natural resources are generally poor and do not do well economically. 
• Countries get rid of all of their natural resources to create arable land.

What is the definition of economic specialization?

• Producing all goods and services needed for a country’s growth, so that trade with other countries is not needed.
• Producing those goods a country can make easily so they can trade them for goods made by others that cannot be produced locally
• Directly swapping goods from one country to another withouthaving to use money
• Trying to avoid investing in industry and technology because ofthe expense involved.

Most countries in Africa practice what type of economy?

• traditional
• market
• mixed
• command

An example of investing in human capital is which of these?

• a mother collecting fire wood
• a teenager learning a specific skill
• a boy taking the cattle to graze
• a child working on the coffee plantation