CMS 7th (SS7E1,2, & 3) Pre-Test

Which TWO situations are likely to occur in a traditional economy?

• People refuse to trade with each other.

• A baker's son becomes a baker

• Bartering is a common means of exchange.

• People frequently change professions.

• The government owns all businesses.

What is the BEST way to describe the economies of Kenya, Nigeria, and South Africa?

• They are mixed economies.

• They are pure command economies

• They are pure market economies.

• They are traditional economies.

Which two elements do countries with mixed economies attempt to balance?

• domestic trade and international trade

• business profits and consumer choice

• efficient production and low investment

• government control and economic freedom

What type of economy do MOST African countries have?

• mixed economies

• traditional economies

• pure market economies

• pure command economies

In the African marketplace, South Africa has a comparative advantage in all of the following sectors EXCEPT

• mining.

• banking

• agriculture.

• manufacturing.

What is a common element of the economic systems of South Africa and Kenya?

• The government controls some major industries.

• Privately owned businesses are prohibited.

• All economic decisions in these countries are made by the government.

• These countries have not developed economically due to trade barriers.

From 2010 to 2015, private sector growth in Nigeria was hindered by which of the following?

• government corruption

• low fiscal expenditures

• structural adjustment policies

• International Monetary Fund loans

In 2006, the government of Kenya sold 30 percent of its stake in the Kenya Electricity Company. In 2005, the government of Nigeria began privatizing its energy industry as well. Based on this information, what conclusion can be drawn about Kenya and Nigeria?

• Both countries have pure market economies.

• Both countries have pure command economies.

• Both countries are incorporating more market elements into their economies.

• Both countries are incorporating more command elements into their economies.

Which statement about an African economy is correct?

• South Africa has a traditional, custom-based economy with some market elements.

• South Africa has a mixed, primarily market-leaning economy with some command elements

• Nigeria has a pure command economy in which the government makes all economic decisions.

• Nigeria has a pure market economy in which private businesses have complete freedom.

Which TWO situations are likely to occur in a pure command economy?

• People refuse to trade with each other.

• There are few obstacles to starting businesses.

• The government sets production quotas for goods.

• There are strong private property protections.

• he government owns all businesses.