Economics of Africa

Why are most economies referred to as “mixed economies”?

• There are not any traditional economic systems left.

• Government planners no longer have complete control over command systems.

• Most countries have aspects of both market and command economies.

• Economic poverty is too great in a pure market system.

Which of the following is NOT one of the basic questions that all economic systems must answer:

• What to produce?

• How to produce?

• How much to produce?

• For whom to produce?

Tribes in Kenya use bartering to trade and practice which type of economy?

• Traditional

• Command

• Market

• Mixed

The economies of South Africa, Nigeria, and Kenya can be best described as:

• Traditional.

• Command.

• Market.

• Mixed.

Which African economy has the most free (from government control) mixed economy?

• Kenya

• Nigeria

• South Africa

• All of the above

Which of the following would reflect Kenya’s mixed economy?

• Prices and wages are solely regulated by the country’s government.

• A combination of privately-owned businesses and government regulations.

• The country’s distribution of resources is based on inheritance.

• All economic decisions are based on customs and beliefs of ancestors.

Which characteristic BEST describes South Africa’s economy?

• Market-leaning

• Traditional

• Command-leaning

• Pure market

During Nigeria’s long period of military rule, what type of economic system did it have?

• Traditional

• Command

• Market

• Mixed

How does voluntary trade help the economy?

• It encourages specialization which means more profit.

• It puts strict tariffs in place.

• It involves many government regulations.

• It sets high prices on imports.

In which area has South Africa specialized?

• oil production

• textiles

• meat processing

• gold and diamond mining