Africa Economics

Under which economic system does the government make almost all of the economic decisions?

• Command (Public)
• Market (Private)
• Traditional (Custom)
• Capitalist (Laws of Supply and Demand)

Which describes how MOST countries around the world answer basic economic questions?

• Most countries are pure command economies
• Most countries are pure market economies
• A mixture of command and market economies
• A mixture of traditional and market economies

In a market economy, who makes the economic decisions?

• subsistence farmers (grow just enough to feed family)
• custom and habit (do what ancestors did)
• government planners (public control)
• people (productions based on supply and demand)

If a country does not invest in its human capital, how can it affect the country's gross domestic product (GDP)?

• Investment in human capital has little effect on the GDP.
• Most workers want to keep their jobs and do not care about the GDP.
• GDP is only affected if workers pay for the investment out of their own pocket.
• GDP may go down because poorly trained workers will not be able to do their jobs well.

What are capital goods?

• The workers who make the goods and services.
• The factories and machines used to make goods.
• The money spent to train workers to use new technology.
• The goods and services that are produced for a country's economy. 

 A limit to the number or amount of a foreign produced good that is allowed into the country is known as

• A tariff
• A quota
• An embargo
• A natural trade barrier

A tax placed on goods coming into a country from another country is known as

• A tariff
• A quota
• An embargo
• A natural trade barrier

A formal halt to trade with a particular country for economic and political reasons is known as

• Tariff
• Quota
• Embargo
• Natural Barrier

What is GDP?

• The value of goods and services a country imports.
• The value of all goods and services produced in a period of time.
• Trade Barriers countries place on each other.
• People who take risks on new businesses.

Why is specialization so valuable to international trade today?

• Most countries only make one product really well.

• Specialization allows people to do a better job at producing what they make best and trade for the things they need.

• It keeps the prices low on imported goods.

• It limits the amount of agriculture a country allows.