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WorksheetsAfrica Econ
Total questions: 23
Worksheet time: 43mins
Name
Class
Date
1.
Kemal manages an automobile factory. If he lives in a country that has a command economy
a)
. the government will probably tell him how many cars to build this month.
b)
. he will decide all by himself how many cars to build this month.
c)
the employees for the factory will tell him how many cars they feel lie making this month.
d)
he will probably examine sales figures before deciding how many cars to build this month.
2.
In most countries, business and industry are owned by both individuals and the government. This kind is economy is known as
a)
command
b)
mixed
c)
traditional
d)
pure command
3.
How are economic decisions made in a market economy?
a)
Decisions are made by government officials.
b)
Decisions are made by individuals who decide what to produce and buy.
c)
Decisions are made based only on what can be produced in factories.
d)
Decisions are made based on custom and habit.
4.
Which of the following is a characteristic of how Kenya’s economy is more market-based than command-based?
a)
The government has given more economic responsibility to business leaders.
b)
Farmers are not allowed to choose which crops they plant.
c)
Prices of goods are set by government officials.
d)
Foreign companies have located regional headquarters there.
5.
In the country of Mauritania, most economic decisions are made based on supply and demand. Businesses are motivated by profits, and competition determines prices. There is a small amount of government regulation, but consumers usually have a great deal of choice. Where would this country be positioned on the economic continuum found above?
a)
Point A
b)
Point B
c)
Point C
d)
Point D
6.
Although both Nigeria and South Africa have an abundance of natural resources, a great number of people live in poverty. Why is this true?
a)
There are no educated people in either of these countries to raise the standard of living.
b)
Nigeria and South Africa have been at war with each other for 30 years which has prevented growth of the economy.
c)
Political leaders have failed to use natural resources to benefit all citizens.
d)
Both countries are ruled by white minorities that prevent all people from making a good income.
7.
Why is specialization so important in international trade?
a)
Most countries only make one product.
b)
Specialization increases tariffs on international products.
c)
Specialization allows countries to make what they’re best at and trade for everything else.
d)
Specialization is not important for international trade.
8.
a)
Since they both specialize, they do not make good trading partners.
b)
They do not use the same currency; therefore, it is impossible for them to trade.
c)
Because they specialize in different goods, they could make good trading partners.
d)
Petroleum is always worth more than South Africa’s exports so the countries should not trade.
9.
Nigeria has a new industry that builds tractors for agriculture. To protect this new industry from competition by lower priced foreign built tractors, the Nigerian government would use what type of economic trade barrier to raise the price of imported tractors?
a)
Embargo
b)
Standard of living
c)
Tariff
d)
Treaty
10.
Why do countries issue tariffs and quotas on international trade?
a)
To punish other countries for breaking treaties
b)
To improve the stock market
c)
To keep the price of international goods low
d)
To encourage people to buy goods made by local businesses
11.
What is the purpose of currency in a country's economy?
a)
to make more profit from the price of goods
b)
to make trading easier between people and nations
c)
to prevent thieves from stealing products
d)
to increase the wealth of the upper class
12.
What is the relationship between education and training in a country and the country’s gross domestic product (GDP)?
a)
Countries with a high level of education and training have a higher gross domestic product.
b)
Gross domestic product only deals with the amount of investment in factories and machinery.
c)
The role of entrepreneurs is the only factor affecting gross domestic product.
d)
There is no relationship between education and training and gross domestic product.
13.
What would MOST LIKELY happen to the standard of living in African countries if more efforts were taken to increase literacy rates?
a)
It would decrease.
b)
It would not change.
c)
There is no relationship between the two.
d)
It would increase.
14.
Why has the country of South Africa made a big investment in human capital?
a)
They were forced to provide training and education by the United Nations.
b)
Most schools and universities are free because of foreign investment in the country.
c)
South Africa has no natural resources to develop, so they have to depend on humans.
d)
Some of the country’s most important industries need workers with special skills.
15.
Which are a part of a business’s capital goods?
a)
Factories, tools, and machines used to make goods
b)
Money for scholarships to graduate college
c)
Workers who make the goods and perform services
d)
Money spent to train workers to use new technology
16.
If a country does not invest in its human capital, how can it affect the country’s gross domestic product (GDP)?
a)
Investment in human capital has little effect on a country’s GDP.
b)
GDP is only affected if worker’s pay for the investment out of their own pockets.
c)
Most workers want to keep their jobs just as they are and do not care about GDP.
d)
GDP may go down because poorly trained workers will not be able to do their jobs as well.
17.
The government of South Africa is spending money to build more roads, railroad tracks, and other infrastructure throughout the country. Why?
a)
They are investing in their capital goods.
b)
They are investing in their human capital.
c)
They are investing in their natural resources.
d)
They are investing in stocks and bonds.
18.
Nigeria has large deposits of oil and is currently exporting a significant quantity of oil. However, Nigeria has very few industries outside of oil and no other significant natural resources. How does this impact Nigeria's GDP?
a)
Makes the GDP more dependent on agriculture
b)
Makes the GDP more dependent on oil production
c)
Makes the GDP more dependent on tourism
d)
Makes the GDP inaccurate because there are too many natural resources in the country
19.
In South Africa it is easy to start a business. In addition, private property rights are well protected. What impact does this have on a role of entrepreneurs in South Africa?
a)
Entrepreneurs are not affected.
b)
The efforts of entrepreneurs are limited because of a lack of government rules.
c)
Entrepreneurs will have no real impact on the economy of South Africa.
d)
Entrepreneurs can make a significant contribution to South Africa's economy.
20.
Here it comes... trick question time. Finish the quote: "When given the choice to be right or be kind, be _____________.
a)
right
b)
kind
c)
gone
d)
yourself
21.
IF country X is at 62.5 and country Y is at 62.7, which one is LEAST free?
(a)
22.
IF country X is at 62.5 and country Y is at 62.7, which one is LEAST free?
a)
X, because it is closer to market.
b)
X, because it is closer to command.
c)
Y, because it is closer to market.
d)
Y, because it is closer to command.
23.
How do you spell entrepreneur?
(a)
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