Africa Review SS7E3

In order to meet their basic needs, many people in Africa rely on the mining industry. Which of the following are the MOST profitable mineral resources found abundantly in Africa?

• zinc

• diamonds

• gold

• copper

Which is a major obstacle toward entrepreneurship in Nigeria?

• reliance on foreign trade

• lack of natural resources

• economic specialization

• government corruption .

What type of investments would help raise a country's literacy rate and standard of living?

• investments in capital goods

• investments in human capital

• investments in bonds

• investments in stocks

How do investments in capital goods raise a country's gross domestic product?

• by improving the skills of the labor force

• by reducing unemployment

• by improving industrial efficiency

• by reducing natural resource usage

What contributes to the low standard of living in some African countries?

• a lack of available land for industrial production

• a lack of available labor for major industries

• a lack of valuable natural resources in the region

• a lack of educational opportunities for citizens

High literacy rates are generally correlated with

• increased regulation of the economy

• high levels of entrepreneurship

• decreased economic specialization

• declines in foreign trade.

In which situation would investment in capital goods be MOST beneficial?

• Countries in Kenya cannot afford rising natural resource prices.

• Countries in Sudan cannot trade due to economic sanctions

• Companies in South Africa cannot find enough skilled workers

• Companies in Nigeria rely on outdated industrial equipment

Investments in human capital typically lead to economic growth by

• enabling workers to be more productive and earn more money

• enabling businesses to charge higher prices for goods they produce.

• enabling consumers to have greater access to foreign-made goods.

• enabling governments to collect higher taxes from citizens