Economics

South Africa invests money in research and development of mining technologies.

Why would South Africa invest money in developing new mining technologies?

• to increase imports

• to decrease capital goods

• to decrease specialization

• to increase Gross Domestic Product (GDP) per capita.

In Kenya, an insect is attacking the tea plants. Elim, a farmer, uses supplies he has on

his tea farm to create a special netting with insect repellant on one side. When his

invention successfully protects his tea plants, he starts making more of these nets and

selling them to his neighbors. What is Elim doing?

• investing in human capital

• exploiting natural resources

• becoming an entrepreneur

• investing in capital goods

A person who organizes and operates a business or businesses, taking on greater than normal financial risks in order to do so.

• inventor

• entrepreneur

• investor

• business organizer

South Africa has only recently begun efforts to produce tea for sale. Kenya is one of the

biggest tea growing nations in the world.

Which TWO statements explain why South Africa might place a tariff on tea from Kenya

instead of passing an embargo?

• . A tariff would discourage other tea-producing countries from trading tea with

  South Africa generally, which would force more South Africans to buy South

  African tea and allow the South African tea industry to grow faster.

• A tariff would allow the new South African tea industry to compete sooner, but

  an embargo against Kenyan tea might result in the demand for tea exceeding

  the supply, since the South African tea industry is still small.

• A tariff would protect the people starting tea production in South Africa

  without affecting other trade with Kenya, while an embargo would end all trade

  with Kenya and affect more than the tea industry.

• E. A tariff would make Kenyan tea more expensive than South African tea within

  South Africa, while an embargo would only limit the amount of Kenyan tea in

  South Africa without making the price of South African tea more competitive.

Which of the following people BEST fulfills the role of an entrepreneur?

• A Kenyan who works on a tea plantation.

• A Kenyan who works in the city for a tourism business.

• A Kenyan who owns his own farm and sells his goods at a local market.

• A Kenyan who grows her own food and trades the small surplus for other

  needed goods.

Which statement BEST compares a feature of Nigeria's economic system to South

Africa's economic system?

• Nigeria has more market systems.

• Nigeria has less international trade.

• Nigeria has a larger government sector.

• Nigeria has less government corruption.

Kenya's Major Natural Resources: Fisheries, forests, wetlands

Top Exports: Tea (#1) and fish (#2)

Nigeria's Major Natural Resources: farmland and oil deposits

Top Exports: Oil (#1), cocoa (#2), and

wood (#3)

Which nation has MOST LIKELY experienced positive economic growth and why?

• Nigeria; because Nigeria produces much more valuable goods for trade than

  Kenya does.

• Kenya; because Kenya has more major natural resources than Nigeria does.

• Kenya; because its products have less competition than Nigeria’s oil and wood

  do.

• Nigeria; because Nigeria produces three products for export instead of just

  two.

What is one way Nigeria could raise its Gross Domestic Product (GDP) per capita?

• increase investment in human capital

• decrease investment in capital goods

• increase its trade barriers

• decrease its literacy rate

Nigeria is a nation with an economy based on exporting natural resources.

What unintended consequences could investment in human capital have on Nigeria’s

economy?

• Investment in human capital could attract many new workers to Nigeria in

  search of better jobs.

• Investment in human capital could make Nigeria’s existing products less

  expensive to produce.

• Investment in human capital could result in well-educated young people

  leaving Nigeria for better jobs abroad.

• Investment in human capital could shift Nigeria’s economy away from exporting raw resources and toward producing finished products.

Which of the following explains how the distribution of natural resources affects the

economy of South Africa?

• South Africa has a large traditional music industry since the country has a

  strong cultural tradition.

• South Africa has a large car industry since the country has many skilled car

  factory workers.

• South Africa has a large technology industry since the country has a lot of

  computers.

• South Africa has a large mining industry since the country has gold and

  platinum.