African Economics

Of the two, which country in Africa has the highest GDP per capita?

• South Africa

• Nigeria

What type of economies does South Africa and Nigeria have?

• Command

• market

• mixed

• traditional

What is South Africa's main export?

• oil

• textiles

• Gold and diamonds

• agricultural products

Which country has the largest per capita GDP?

• Nigeria

• GDP is not measured in Africa

• South Africa

• The GDPs are almost 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.

South Africa- GDP $9,800 / unemployment rate 24%

Nigeria - GDP $2000 / unemployment rate 4.9%

What does this information indicate that might be a concern about the economy of South Africa?

• The GDP is lower than that of Nigeria.

• The country has a high unemployment rate.

• There is not much of a world market for gold and diamonds.

• Few of their people are able to work in the services sector.

How does voluntary trade help the economy?

• Voluntary trade means prices will always be low.

• Voluntary trade only works when tariffs are in place.

• This sort of trade involves many government regulations

• It encourages specialization and usually means more profit.

Why is specialization so valuable in international trade today?

• Most countries can make one product very well.

• Specialization limits the amount of agriculture a country allows.

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

• Specialization allows people to do a more efficient job at producing what they make best and trade for the things they want.

In which has South Africa Specialized?

• oil production

• grain production

• textile manufacturing

• gold and diamond mining

In which has Nigeria specialized?

• oil production

• gold and salt trade

• corn and wheat production

• iron and steel manufacturing