Africa Economics Review

Which situation is likely to occur in a market economy?

• The government owns all businesses.

• There are few obstacles to starting businesses.

• There are many obstacles to starting businesses.

• The government sets production quotas for goods.

Which situation is likely to occur in a pure command economy?

• There is free trade between businesses.

• There are strong private property protections

• There are few obstacles to starting businesses.

• The government sets production quotas for goods.

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

• They are pure command economies.

• They are pure market economies.

• They are traditional economies.

• They are mixed economies.

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

• business profits and consumer choice

• government control and economic freedom

• domestic trade and international trade

• efficient production and low investment

Which economic practice MOST helps African economies benefit from international trade?

• specialization

• generalization

• raising interest rates

• lowering inflation rates

What do countries with strong, well-funded education systems generally have?

• fewer trading partners than other countries

• higher unemployment than other countries

• more entrepreneurs than other countries

• lower populations than other countries

Which of the following is an example of investment in capital goods?

• A country spends money to improve the educational system of the country

• A business spends money to improve the training of workers in their factory.

• A country spends money to improve the healthcare system of the country.

• A business spends money to improve the machinery and technology in their factory.

What is the BEST way for a country to encourage economic growth in its private sector?

• by increasing government spending

• by nationalizing important industries

• by restricting trade with other countries

• by reducing barriers to entrepreneurship

Why is it important for nations to economically specialize?

• Specialization limits the effects of globalization.

• Specialized economies use resources more efficiently

• Specialized nations can profit from otherwise worthless goods.

• Specialization limits foreign influence over a nation’s economy

Based on the information in the chart, which country would MOST LIKELY have the most stable government?

• Country A

• Country B

• Country C

• Country D