7.3 - 7.5 Economic Systems in Africa

free enterprise system with some government involvement

• traditional economy

• command economy

• market economy

• mixed economy

characterized by a central authority which makes major economic decisions

• traditional economy

• command economy

• market economy

• mixed economy

the basic economic questions are answered based on a socially, pre-established way

• traditional economy

• command economy

• market economy

• mixed economy

government has little to say about what, how, and for whom goods are produced; the factors of production are privately owned

• traditional economy

• command economy

• market economy

• mixed economy

How does a traditional economy differ from a market economy?

• In a market system, a central authority owns the factors of production.

• In a market system, the government answers the three basic questions.

• In a traditional system, a great variety of goods and services are available.

• In a traditional system, economic decisions are based on custom.

mixed economy

ports along the Atlantic Ocean

Africa's largest producer of petroleum

must import most of their goods that citizens need

government and economy plagued by corruption and waste

Which country is being described?

• Egypt

• Kenya

• Nigeria

• South Africa

All of these are found in a command economy EXCEPT

• ownership of corporate stock

• minimum wage

• government regulation of the economy

• environmental controls

a restriction to regulate international commerce

• currency

• gross domestic product

• specialization

• tariff

• trade barrier

the total value of all the goods and services produced within a country in a given year

• currency

• gross domestic product

• specialization

• tariff

• trade barrier

a tax on imported goods and is usually designed to protect domestic production of similar goods

• currency

• gross domestic product

• specialization

• tariff

• trade barrier