How does voluntary trade help the economy?

It encourages specialization and usually means more profit

Which of the following is a part of a country's human capital?

skills and knowledge that workers possess

What are natural resources?

resources that come from nature

Why is a system of currency exchange necessary for international trade?

To pay for goods purchased from different countries

Who is an entrepreneur?

someone who takes a risk to begin a new business

Why did a number of countries have an embargo against South Africa?

They wanted South Africa to end its system of apartheid

Why was Nigeria under a command economy?

The country was under military rule

Why are most economies referred to as "mixed"?

most countries have characteristics of command & market

What happens to a country's GDP when it doesn't invest in human capital?

GDP could decrease - unskilled workers = poor jobs

What is "specialization"?

focusing on one or two products to raise quality/lower price

How could a tariff on imported grain help the people in the country charging the tariff?

The people can sell their grans cheaper than imported grain

What are conflict diamonds?

diamonds that are sold to fund wars

a limit on the number of goods traded

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African Economics (SS7E1, SS7E2, SS7E3)

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Questions 22

Answers

1
How does voluntary trade help the economy?
It only works when tariffs are in place
This sort of trade involves many government regulations
It encourages specialization and usually means more profit
It means prices will always be low
2
An economic system which is located somewhere on the continuum between market and command is a:
command economy
mixed economy
traditional economy
market economy
3
What type of economies does South Africa and Nigeria have?
Mixed
Command
Traditional
Market
4
Which of the following is a part of a country's human capital?
money paid to workers for producing goods
the amount of goods sold in foreign trade
skills and knowledge that workers possess
taxes collected from county workers
5
What type of economy is based on customs and beliefs?
mixed market
command
free market
traditional
6
What are natural resources?
resources that come from nature
resources that come from space
resources that are given
people who preform labor
7
Which is a synonym for entrepreneur?
consumer
customer
business owner
banker
8
Why is a system of currency exchange necessary for international trade?
Most goods must be paid in US dollars
To pay for goods purchased from different countries
All currencies are worthless on the world market
The people buying goods want to be paid in gold and silver
9
Who is an entrepreneur?
a person that does not take risks
someone who is always successful
someone who takes a risk to begin a new business
a person afraid to enter the free market
10
Why did a number of countries have an embargo against South Africa?
Some were hoping for better oil deals from South Africa
South Africa refused to take part in international trade
They wanted South Africa to lower the world price of gold
They wanted South Africa to end its system of apartheid
11
Investing in factories, machinery, and technology is investing in:
human capital
capital goods
command capital
natural resources
12
Why was Nigeria under a command economy?
There is not much of a world market for gold and diamonds
The country was under military rule
Few of their people are able to work in service industry
Most people did not know how to produce on their own
13
Why are most economies referred to as "mixed"?
economic decisions are made by individuals
they have a system known as bartering
government planning groups make most of the decisions
most countries have characteristics of command & market
14
In which has Nigeria specialized?
agriculture
Tourism
Oil production
Gold and diamonds
15
What happens to a country's GDP when it doesn't invest in human capital?
most workers do not care about the GDP
it has little effect
GDP could decrease - unskilled workers = poor jobs
GDP is only affected when there are out of pocket expenses
16
Which trade barrier is used when a country raises the price of imported goods?
strike
Quota
tariff
embargo
17
Which country has the largest per capita GDP?
South Africa
Nigeria
Sudan
Kenya
18
What is "specialization"?
taxing imported goods
limiting the amount of agriculture a country allows
focusing on one or two products to raise quality/lower price
anything that prevents a country from exchanging goods
19
How could a tariff on imported grain help the people in the country charging the tariff?
The grain process would be lower if tariffs were in place.
The grain would be more plentiful due to it being closer.
The grain would always be of a higher quality.
The people can sell their grans cheaper than imported grain
20
What are conflict diamonds?
those diamonds whose value cannot be determined
those diamonds whose ownership cannot be determined
diamonds that are sold to fund wars
diamonds given as gifts to end war
21
A country in which the government decides what is produced is which type of economic system?
market
traditional
command
public
22
What is a quota?
a halt to trade with a particular country
a tax paid when goods are sold
a limit on the number of goods traded
a tax placed on goods exported or imported into a country

African Economics (SS7E1, SS7E2, SS7E3) Flashcards | StudBud