Africa Economics

In a traditional economy, how are economic decisions made? In a traditional economy, how are economic decisions made?

• Custom and habit

• Government leaders

• Consumers and planners

• Combination of consumers and producers

Who takes on the financial risk in starting a new business in a market economy?

• Consumers

• Government planners

• Individual business people

• Combination of planners and investors

What is South Africa’s main export

• Oil

• Textiles

• Gold and diamonds

• Agricultural products

Which country has the largest per capita GDP

• Nigeria

• South Africa

• GDP information is not available

• The GDPs are almost all the same.

How does voluntary trade help the economy

• Voluntary trade mean 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 did a number of the countries of the United Nations have an embargo on South Africa?

• South Africa refused to take part in international trade.

• They wanted South Africa to end its system of apartheid.

• Some were hoping for better oil deals from the South African government.

• They wanted South Africa to lower the world price of gold and diamonds.

Which is part of a country’s human capital?

• Skills and knowledge workers have

• Taxes collected from a country’s workers

• Money paid to workers for producing goods

• The amount of goods sold in foreign trade in a year.

What are capital goods?

• The workers who made the goods and services.

• The factories and machines used it make goods

• Money spent to train workers to use new technology

• Money available for scholarships to graduate schools

Which Best describes income?

• Money borrowed from a credit union.

• Credit offered on the basis of a person’s salary

• Money you earn working or get from investing

• Taxes paid to the government based on annual salary

What is Nigeria’s main export?

• Oil

• Cotton

• Fish

• Textiles