South Africa Economy

Which characteristic BEST describes South Africa’s economy?

• Market-leaning

• Traditional

• Command-leaning

• Pure market

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.

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

In which area has South Africa specialized?

• oil production

• textiles

• meat processing

• gold and diamond mining

When a government decides to increase a tariff, it increases the amount of a tax placed upon ___________.

• people’s income.

• imported goods.

• renewable resources.

• people’s property.

What is one way that South Africa has invested in developing its human capital?

• Expanding railroads, seaports, and airports

• Providing job-training programs for its workers

• Improving access to electricity

• Updating farm equipment and machinery

Investing in capital goods means spending money on:

• Education and training

• Developing natural resources

• Factories and businesses

• Job-training programs

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.

Use the map to answer the question.

Based on the map, what can be concluded about

South Africa?

• South Africa has a very low unemployment rate.

• The South African people enjoy many personal

  freedoms.

• The South African economy is centrally planned.

• South Africa has a relatively high gross domestic

  product.