Africa Economic Systems

characterized by a central authority which makes major economic decisions

• traditional economy

• command economy

• market economy

• mixed economy

the basic economic questions are answered based on a socially, pre-established way

• traditional economy

• command economy

• market economy

• mixed economy

government has little to say about what, how, and for whom goods are produced; the factors of production are privately owned

• traditional economy

• command economy

• market economy

• mixed economy

How does a traditional economy differ from a market economy?

• In a market system, a central authority owns the factors of production.

• In a market system, the government answers the three basic questions.

• In a traditional system, a great variety of goods and services are available.

• In a traditional system, economic decisions are based on custom.

mixed economy

ports along the Atlantic Ocean

Africa's largest producer of petroleum

must import most of their goods that citizens need

government and economy plagued by corruption and waste

Which country is being described?

• Egypt

• Kenya

• Nigeria

• South Africa

Which of the following is true about Nigeria?

• Nigeria has no natural resources. They need to develop industry and import raw materials in order to export finished goods.

• Nigeria has many natural resources; however, they are land-locked and need to effectively work with other nations to move natural resources through other countries for exporting.

• Nigeria is rich in oil and natural gas, and they need to drill for petroleum products effectively and develop refineries in order to trade for other resources from other African countries.

• Nigeria is rich in gold and diamonds, and they need to learn to mine these resources effectively in order to trade for other resources from other African countries.

Nigeria's film industry is famous throughout Africa. It is sometimes referred to as "Nollywood." After the United States and India, Nigeria ranks third in the production of movies. What might be one way Nigeria's film industry BENEFITS the country economically?

• It may encourage positive stereotypes about Americans.

• Nigerian actors may become famous in America and earn large salaries.

• Nigerians attend fewer concerts and plays.

• It provides jobs for thousands of people.

What domestic challenges do African entrepreneurs face that impede their success? Choose the THREE that apply.

• a lack of skills training

• a lack of support services and infrastructure

• a lack of necessity for new inventions

• a lack of access to funding

• a lack of opportunity for entrepreneurs

Which situation is likely to occur in a market economy?

• The government owns all businesses.

• There are few obstacles to starting businesses.

• There are many obstacles to starting businesses.

• The government sets production quotas for goods.

Which situation is likely to occur in a pure command economy?

• There is free trade between businesses.

• There are strong private property protections.

• There are few obstacles to starting businesses.

• The government sets production quotas for goods.