Africa Economy Quiz- April

What are three basic economic questions?

• Where to produce? How to produce? Why produce?

• Where to produce? Why produce? For whom to produce?

• What to produce? How to produce? For whom to produce?

• What to produce? How to produce? Why produce?

In this economy, people may buy and sell whatever they would like. In the economy, goods are bought and sold freely. What is this type of economy?

• traditional

• command

• market

• public

Why are most modern economies referred to as mixed economies?

• 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.

• Poverty is always highest in countries with market economies.

• Government planners do not know how to handle economic problems.

Read the paragraph about embargoes. - An embargo is the act of not allowing trade ships to enter or leave a country's ports. Embargoes are sometimes done to protect the supply or value of a country's goods, but they can also be used as a strategy against other countries who wish to trade for those goods. In the United States, the Embargo Act of 1807 was passed to hurt Britain and France during the Napoleonic Wars. The embargo was lifted, however, after it hurt the American economy more than it did Britain's or France's.

Why do countries impose embargoes?

• To declare war

• To take money from farmers

• To strengthen the economy of other nations

• To punish the country it is placed against

Why is specialization so valuable in international trade today?

• Specialization allows people to do a more efficient job at producing what they make best.

• Specialization limits the amount of agriculture a country allows.

• Specialization always keeps the prices low on goods that are imported into a country.

• Most countries can only make one product well.

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

• There must be a way to pay for goods purchased from countries with different types of currencies.

• Most goods bought on the international market must be paid for in US dollars.

• Nearly all world currencies are worthless on the world market.

• Those buying goods on the world market want to be paid in gold and silver.

Which of the following is a factor that lead to the nationalist movements in many African countries?

• fear of imprisonment

• fear of punishment from white government leaders

• African slavery

• increased education from Africans who had been overseas

Which is the correct definition for tariff.

• A formal agreement between countries.

• A tax or duty to be paid on a particular class of imports or exports.

• Penalties applied by countries against another country, group, or individual.

What is the correct definition for treaty?

• A tax or duty to be paid on a particular class of imports or exports.

• Penalties applied by countries against another country, group, or individual.

• A formal agreement between countries.

Which is the correct definition for sanction?

• Penalties applied by countries against another country, group, or individual.

• A tax or duty to be paid on a particular class of imports or exports.

• A formal agreement between countries.