Africa Economics Review

In a traditional economy, how are economic decisions made? In a traditional economy, how are economic decisions made?

• Custom and habit

• Government leaders

• Consumers and planners

• Combination of consumers and producers

Who takes on the financial risk in starting a new business in a market economy?

• Consumers

• Government planners

• Individual business people

• Combination of planners and investors

What is South Africa’s main export

• Oil

• Textiles

• Gold and diamonds

• Agricultural products

Which country has the largest per capita GDP

• Nigeria

• South Africa

• GDP information is not available

• The GDPs are almost all the same.

Why did a number of the countries of the United Nations have an embargo on South Africa?

• South Africa refused to take part in international trade.

• They wanted South Africa to end its system of apartheid.

• Some were hoping for better oil deals from the South African government.

• They wanted South Africa to lower the world price of gold and diamonds.

Which is part of a country’s human capital?

• Skills and knowledge workers have

• Taxes collected from a country’s workers

• Money paid to workers for producing goods

• The amount of goods sold in foreign trade in a year.

What are capital goods?

• The workers who made the goods and services.

• The factories and machines used it make goods

• Money spent to train workers to use new technology

• Money available for scholarships to graduate schools

What is Nigeria’s main export?

• Oil

• Cotton

• Fish

• Textiles

What economic problem is South Africa currently facing?

• High literacy rates

• High unemployment rates

• No trading partners

• Too much government control

What is an example of a physical trade barrier in Africa?

• Quota on Egyptian cotton sheets

• Tariff on Nigerian oil

• The Sahara desert

• Embargo on South Africa