Africa Econ Review

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.

Which BEST describes the economy of Country X?

• pure market

• pure command

• traditional

• mixed

The economy described in the text is MOST LIKELY which of the following?

• mixed

• traditional

• command

• market

What type of economy depends on a central government to set prices and production quotas, which often contributes to inefficient production, surpluses, and shortages?

• command economy

• market economy

• mixed economy

• traditional economy

What is a characteristic feature of market economies?

• inherited economic roles

• valuable natural resources

• government ownership of land

• high levels of entrepreneurship

How are the basic economic questions decided in a market economy?

• They are decided based on custom and habit.

• They are decided based on the needs of the public.

• They are decided based on government priorities.

• They are decided based on consumer preferences.

In which country does the government have the MOST influence over the economy?

• Botswana

• Kenya

• Nigeria

• South Africa

Which resource is largely responsible for Nigeria's economic gains?

• coal

• diamonds

• lead

• oil

Why is it important for nations to economically specialize?

• Specialization limits the effects of globalization.

• Specialized economies use resources more efficiently.

• Specialization limits foreign influence over a nation's economy.

• Specialized nations can profit from otherwise worthless goods.

Angola, one of Nigeria's trading partners, is trying to protect its domestic oil refineries from competition. To do so, it limits the amount of refined oil that can be imported from other countries. What is this an example of?

• an embargo

• a quota

• a tariff

• a subsity