African Economy

In a traditional economy, how are economic decisions made?

• custom and habit

• government leaders

• consumers and planners

• conbination of consumers and producers

In a command economy, how are economic decisions made?

• custom and habit

• government leaders

• consumers and planners

• combination of consumers and producers

In a market economy, how are economic decisions made?

• custom and habit

• government leaders

• consumers and planners

• individuals

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

• custom and habit

• government leaders

• individual business people

• combination of consumers and producers

Why are 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

What is South Africa's main export?

• oil

• textiles

• gold and diamonds

• agricultural products

The economies of South Africa, Nigeria, and Kenya can best be described as...

• mixed

• market

• command

• traditional

Which of the following countries has the largest per capita GDP?

• Nigeria

• South Africa

• Kenya

• they are all the same

Why was Nigeria formerly under a command economic system?

• The country was under military rule

• Most people did not know how to produce anything on their own

• The government wanted to control the gold and diamond exports

• They were forced by the United Nations to use a command system

What is a challenge facing Kenya's economy?

• air pollution

• water pollution

• terrorism and poor infrastructure

• weak government and corruption