Economic Factors and Systems

How do geographic factors influence economic activities in a region?

• They determine the political system of the region.

• They affect where people live and work, influencing farming, factories, and trade.

• They have no impact on economic activities.

• They only affect the climate of the region.

What are the three main factors of production needed for an economy to function?

• Technology, labor, and politics.

• Natural resources, labor, and capital.

• Education, healthcare, and infrastructure.

• Climate, geography, and culture.

Why might countries near rivers have an economic advantage?

• They have better political systems.

• They can trade more easily and grow faster economically.

• They have more natural resources.

• They have a higher literacy rate.

What role do political relationships play in economics according to the text?

• They determine the climate of a region.

• They are unrelated to economic activities.

• They are formed based on resources and locations, affecting trade and business.

• They only affect the literacy rate of a country.

What is the term used when countries trade with each other?

• Domestic trade

• Local trade

• International trade

• Regional trade

In a free enterprise system, who decides what to buy and sell?

• The government

• Private businesses

• International organizations

• Community leaders

Which economic system involves the government controlling almost everything?

• Free enterprise

• Socialism

• Communism

• Capitalism

Why is it important for people to act with ethics in a free enterprise system?

• To increase profits at any cost

• To ensure honesty and fairness in business

• To reduce competition

• To avoid paying taxes

Which of the following is an indicator of how well a country's economy is doing?

• Population size

• Climate conditions

• Literacy rate

• Cultural diversity

Which of the following statements explains why the Congo River is an important location for economic activity in Central Africa?

• Dams on the river prevent flooding in the region.

• The river provides water for agriculture and fish for food.

• Mineral resources such as gold and diamonds are mined from the river.

• The river forms the national borders of several countries.