Africa's Economy

What, how, and for whom to produce are the basic economic questions that every society must answer.

• true
• false

Why is a system of currency exchange necessary for international trade?

• The people buying goods want to be paid in gold and silver
• To pay for goods purchased from different countries
• All currencies are worthless on the world market
• Most goods must be paid in US dollars 

What is a tariff?

• A government order to stop trade
• A limit placed on imports
• A tax placed on imports

A tariff....

• Encourages people to buy goods made from their country.
• Increases trade between other countries.
• Stops trade completely.
• Only placed to encourage democracy.

What is an embargo?

• A government order to stop trade.
• A limit placed on imports.
• A tax placed on imports.

In a command economy, who holds power over the economy?

• The people
• The government 
• Beyonce
• The traditions of your ancesetors 

Nigeria specializes in _____.

• Oil
• Diamonds
• Gold
• Technology

South Africa specializes in ____.

• Oil
• Diamonds
• Uranim
• Technology

Which of the following is an economic system in which the government and individuals are used to decide how to use scarce resources?

• Market economy
• Command economy
• Traditional economy
• Mixed economy

Which of the following is an economic system in which economic decisions are made according to social roles & culture?

• Market economy
• Command economy
• Traditional economy
• Mixed economy