Economies of Africa

Which item would NOT be traded in a Traditional Economy?

• Chicken Eggs

• Crops

• Goats

• Laptops

What is an advantage of a market economy?

• The government does everything for the people

• The people have a high degree of economic freedom

• The government owns all the capital goods.

• The government answers the 3 economic questions.

Why do economies fall somewhere between a market and command economy?

• Some degree of government control helps economies be more successful.

• Some people like for the government to totally control the economy

• No economy falls between market and command.

• All economies should be pure market.

When private businesses answer the 3 economic questions (What to produce, how to produce, and for whom to produce), that is a sign they lean to the __________ side of the economic continuum.

• Mixed

• Command

• Market

• Traditional

When a country has government regulations, that is ALWAYS a sign it would fall more towards the command side of the economic continuum.

• True

• False

Answer explanation

Government regulation are still found in economies that fall on the market side of the continuum. This is meant to protect the consumers from businesses. Ex: Governments regulate chemicals that can be used in products to prevent consumers from being exposed to unhealthy chemicals.

A government owning most industries and capital resources is a sign that they would fall on the command side of the economic continuum.

• True

• False

Answer explanation

If the government owns the industries and resources,

More __________ are found in a market leaning economy.

• Money

• Citizens

• Privately owned businesses

• Kings

What is the main industry in Nigeria?

• Oil

• Gold

• Tourism

• Manufacturing

What are the main industries of South Africa?

• Oil

• Agriculture

• Diamonds and Gold

• Gold and Oil

What are the main industries in Kenya?

• Gold and Oil

• Tourism

• Tourism, manufacturing and Agriculture

• Oil and Agriculture