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Economics of Africa Flashcards | StudBud
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Economics of Africa
Economics of Africa
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1
In a traditional economy, how are economic decisions made?
consumers and planners
custom and habit
government leaders
combination of consumers and producers
2
Why is specialization so valuable in international trade today?
Allows people to do more efficient job to make things best.
Specialization keeps prices low on imported goods.
Specialization limits amount of agriculture a country allows
Most countries can only make one product well.
3
Why is a system of currency exchange necessary for international trade?
Most goods bought on the market must be paid in US dollars.
Buying goods on the world market need to be paid in gold.
Most world currencies are worthless in the world market.
Must be a way to buy goods from countries with dif. money.
4
What are capital goods?
The workers who make the goods and services.
Money spent to train workers to use new technology.
The factories and machines used to make goods.
Money available for scholarships to graduate schools.
5
Why has the country of South Africa made a big investment in human capital?
Most schools are free due to $$$ from foreign investments.
South Africa has no natural resources to develop.
The UN forced them to provide training and education.
The country's important industries needed skilled workers.
6
In which has South Africa specialized?
gold and mining
textile manufacturing
grain production
oil production
7
Why do most economies today operate somewhere in between a market and a command economy?
Government can always make a market economy profitable.
Government control of the economy has never been successful.
Consumers prefer government control to a free market system.
Countries feel a mixture of both types is best.
8
In a market economy, how are economic decisions made?
custom and habit
government planners
consumers and the market
individuals starting new businesses
9
Which African country has 40 percent of the world's gold supply?
Angola
Sierra Leone
South Africa
Nigeria
10
Why are most modern economies referred to as mixed economies?
Poverty is always higher in countries with market economies.
Products made by traditional economies have no markets.
Government planners don't handle economic problems well.
Countries have aspects of all 3 types of economies at work.
11
Who takes on the financial risk in starting a new business in a market economy?
consumers
government planners
combination of planners and investors
individual business people
12
What is gross domestic product (GDP)?
Value of the products a country buys from foreign nations.
Value of goods and services produced by small businesses.
Amount collected in taxes from people of a country in a year
Total value of goods and services produced in a year.
13
Which would be a problem for a community with a traditional economy?
People need products that cannot be made or traded locally.
Younger workers learn to make the products by older workers.
People in the village make their products more efficiently.
The price of advanced electronics, like computers, rise.
14
In a command economy, how are economic decisions made?
consumers and the market
custom and habit
combination of consumers and planners
government planners
15
Which is the best way to describe an entrepreneur?
A business person who tries not to take risks with money.
A business person afraid to enter the free market.
Someone who is always successful in whatever he attempts.
Someone who is willing to take a risk to begin a business.
16
How could a high tariff on imported grain help the people in the country charging the tariff?
Locals would be able to sell their grain since it's cheaper.
Local grain would be more expensive.
Local grain would always be higher quality than other grain
The grain prices would be higher if tariffs were in place.
17
Which is a result of Nigeria's focus on the oil industry?
oil production has caused no problems
the country's lack of a good army
lack of improvements in agriculture
the country's need for new currency
18
Why was Nigeria formerly under a command economic system?
The government wanted to control the gold and diamond export
Most people did not know how to produce anything of value.
The country was under military rule.
They were forced by United Nations to use a command system
19
Which is part of a country's human capital?
money paid to workers for producing goods
the amount of goods sold in foreign trade in a year
skills and knowledge workers have
taxes collected from a country's workers
20
What is a tariff?
Tax placed on goods made by local craftsmen/ manufacturers.
A tax placed on goods coming into one country from another.
A tax paid by the purchaser when goods are sold.
Fee paid when goods shipped from one state to another in USA
21
What is a quota?
A limit on the amount of foreign goods allowed in a country.
Decision to prevent certain goods from being imported at all
A tax placed on goods when they are purchsed in the market.
A tax placed on imported goods when they enter the country.
22
What is an embargo?
A tax paid by the producer before he can sell his goods.
A tax on goods coming into the country from another.
A limit on the amount of certain goods allowed in a country.
Halt to trade with a country for economic/political reasons.
23
In which has South Africa invested heavily in capital goods?
agriculture
space technology
mining and heavy industry
new government buildings
24
Which would be a problem in a command economy?
People trying to start a new business would need permission.
Individuals would risk their own money to produce goods.
People would get rich.
Local crafts would be produced before manufactured goods.
25
What is Nigeria's main export?
oil
gold and diamonds
textiles
agricultural products
26
.Why did a number of the countries from the United Nations have an embargo on South Africa?
South Africa refused to take part in international trade.
They want South Africa to lower the price of gold.
They wanted South Africa to end their system of apartheid.
Some were hoping for better oil deals from South Africa.
27
How are profits from diamonds being used today in many African countries?
Profits fund military supplies for civil wars.
Surplus grain is bought and imported for hungry people .
Money is used to make improvements in infrastructure .
Money is used to pay for evironmental clean-up programs.
28
The economies of South Africa and Nigeria can be described as?
command
market
traditional
mixed
29
In which has Nigeria invested heavily in capital goods?
oil production and refining
communications and technology
mining and heavy industry
agriculture
30
What is an import?
Goods brought into one country from another.
A refusal to take part in international trade.
When a country announces it will not trade with another.
Legal separation of races.
