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African Economies

Total questions: 14

Worksheet time: 7mins

Name
Class
Date
1.

The South African economy can BEST be described as a

a)

command economy.

b)

traditional economy.

c)

pure market economy.

d)

mixed market economy.

2.

All of these are characteristics of a ___ economy.


· Decision making based on supply and demand.

· Adjusts to changes in the market place.

· Producers and consumers have control of the economy.

a)

command

b)

market

c)

socialist

d)

traditional

3.

Which of these is a correct description of one of the ways in which a command economy differs from a market economy?

a)

Market economies discourage free enterprise.

b)

In a market economy, the government sets prices.

c)

Command economies tend to have a higher per capita GDP.

d)

In a command economy, individuals have less economic freedom.

4.

Which question is MOST LIKELY a fundamental economic question?

a)

Who will pay the taxes?

b)

Who will educate the workers?

c)

Who will get the goods and services produced?

d)

Who will do the work to produce the goods and services?

5.

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

a)

Custom and habit

b)

Government leaders

c)

Consumers and planners

d)

Combination of consumers and producers

6.

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

a)

Consumers

b)

Government planners

c)

Individual business people

d)

Combination of planners and investors

7.

How does voluntary trade help the economy

a)

Voluntary trade mean prices will always be low.

b)

Voluntary trade only works when tariffs are in place.

c)

This sort of trade involves many government regulations

d)

It encourages specialization and usually means more profit.

8.

Which is part of a country’s human capital?

a)

Skills and knowledge workers have

b)

Taxes collected from a country’s workers

c)

Money paid to workers for producing goods

d)

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

9.

What are capital goods?

a)

The workers who made the goods and services.

b)

The factories and machines used it make goods

c)

Money spent to train workers to use new technology

d)

Money available for scholarships to graduate schools

10.

Which Best describes income?

a)

Money borrowed from a credit union.

b)

Credit offered on the basis of a person’s salary

c)

Money you earn working or get from investing

d)

Taxes paid to the government based on annual salary

11.

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

a)

Quota on Egyptian cotton sheets

b)

Tariff on Nigerian oil

c)

The Sahara desert

d)

Embargo on South Africa

12.

Today, both South Africa and Nigeria have ___________ economic systems.

a)

Traditional

b)

Command

c)

Market

d)

Mixed

13.

If Sudan’s government puts a limit on how much Nigerian oil it will import this year, what trade barrier is this?

a)

Embargo

b)

Tariff

c)

Quota

d)

Opportunity Cost

14.

Tribes in Kenya use bartering to trade and practice which type of economy?

a)

Traditional

b)

Command

c)

Market

d)

Mixed