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Africa Economics

Total questions: 31

Worksheet time: 18mins

Name
Class
Date
1.

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

2.

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

3.

What is South Africa’s main export

a)

Oil

b)

Textiles

c)

Gold and diamonds

d)

Agricultural products

4.

Which country has the largest per capita GDP

a)

Nigeria

b)

South Africa

c)

GDP information is not available

d)

The GDPs are almost all the same.

5.

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.

6.

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

a)

South Africa refused to take part in international trade.

b)

They wanted South Africa to end its system of apartheid.

c)

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

d)

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

7.

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.

8.

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

9.

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

10.

What is Nigeria’s main export?

a)

Oil

b)

Cotton

c)

Fish

d)

Textiles

11.

What economic problem is South Africa currently facing?

a)

High literacy rates

b)

High unemployment rates

c)

No trading partners

d)

Too much government control

12.

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

13.

During Nigeria’s long period of military rule, what type of economic system did it have?

a)

Traditional

b)

Command

c)

Market

d)

Mixed

14.

Which country has the strongest economy in Africa?

a)

Nigeria

b)

Botswana

c)

South Africa

d)

Sudan

15.

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

a)

Traditional

b)

Command

c)

Market

d)

Mixed

16.

In which has South Africa specialized?

a)

oil production

b)

textiles

c)

meat processing

d)

gold and diamond mining

17.

How has Nigeria’s concentration on oil production hurt the country’s economy?

a)

Oil production has caused no problems.

b)

All children have a free high school education.

c)

Most Nigerians are wealthy because of oil production.

d)

Agriculture has suffered and the country must import food.

18.

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

19.

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

a)

Traditional

b)

Command

c)

Market

d)

Mixed

20.

Which African country has the highest Gross Domestic Product (GDP)?

a)

Congo

b)

South Africa

c)

South Sudan

d)

Ghana

21.

In which area has Nigeria invested heavily in capital goods?

a)

education

b)

agriculture

c)

communications technology

d)

oil production

22.
Why does specialization make trade between countries easier?
a)
There will always be a steady supply of goods on the market so trade is not needed.
b)
Countries can produce what they make best and trade with others for what they need.
c)
A country’s economy will never go through a difficult time if they specialize in a good.
d)
The competition between countries will not exist without interdependance.
23.
Why is it important for nations to have a system to convert from one currency to another?
a)
Converting currency makes it possible to buy and sell goods between countries with different types of money.
b)
The dollar is the most valuable currency in the world.
c)
Converting currencies makes goods cost less so more people are likely to trade.
d)
It is not important because international trade can now occur with an exchange rate.
24.
What is the definition of Gross Domestic Product (GDP)?
a)
The total value of all the goods and services a country produces in a year.
b)
The total value of all goods imported within a year.
c)
The total value of taxes collected in a year.
d)
The total value of all goods produced by entrepreneurs in a year.
25.
Tariffs and quotas are alike because they both __________________.
a)
restrict or limit trade between countries.
b)
completely stop trade between countries.
c)
increase trade between countries.
d)
make trading a lot easier between countries.
26.
Countries who specialize in oil as their main export like Nigeria usually import items such as
a)
food
b)
raw materials
c)
technology
d)
all of the above
27.
Which of these would be an example of investing in capital goods?
a)
Upgrading the factories, tools, or technology in your country
b)
Providing better education for your citizens
c)
Exploring for more crude oil in your country
d)
Providing better healthcare for your citizens
28.
When a country improves its factories, technology, and infrastructure (roads/ports/etc.), which of the following resources is it investing in?
a)
human capital
b)
capital goods
c)
natural resources
d)
currency
29.
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.
30.
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
31.
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.