Unit 9 Test Review

Which situation is likely to occur in a pure command economy?

• There is free trade between businesses.

• There are strong private property protections.

• There are few obstacles to starting businesses.

• The government sets production quotas for goods

Which situation is likely to occur in a market economy?

• The government owns all businesses.

• There are few obstacles to starting businesses.

• There are many obstacles to starting businesses

• The government sets production quotas for goods

Use the diagram to answer the question:

Based on the information in the diagram, what do the economies of Nigeria, South Africa, and Kenya have in common?

• All limit foreign trade

• All discourage entrepreneurship

• All have high standards of living

• All have mixed economies

Which two elements do countries with mixed economies attempt to balance?

• local trade and international trade

• business profits and consumer choice

• efficient production and low investment

• government control and economic freedom

Read the information in the box and answer the question:
Which BEST describes the economy of Country X?

• Pure Market

• Traditional

• Mixed

• Pure Command

The most pressing economic issues facing South Africa are which of the following? HINT: What was Apartheid?

• Unemployment and Inequality

• Shortages of minerals and oil

• Lack of skilled labor and management

• Disease and insufficient health services

Which economic practice MOST helps African economies benefit from international trade?

HINT: Which is the only word we learned about

• Specialization

• Generalization

• Raising Interest

• Lowering Inflation

Why is it important for nations to specialize?

• It LIMITS the effects of globalization

• Specialized economies use resources better

• It LIMITS foreign influence over a nation's economy

• Countries can profit from worthless goods

Use the information to answer the following question.

Nigeria and its neighboring country Cameroon disagree over which country should control the Bakassi region. To pressure Cameroon, the Nigerian government decides to ban the sale of oil to Cameroon.

Which type of trade barrier is being described?

• Embargo

• Quota

• Specialization

• Tariff

Angola, one of Nigeria's trading partners, is trying to protect its domestic oil refineries from competition. To do so, it limits the amount of refined oil that can be imported from other countries.

What is this an example of?

• Embargo

• Quota

• Subsidy

• Tariff