African Economic Understandings - 7th Grade

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50 terms · Questions 141 - 190

In a traditional economy, how are economic decisions made

customs and habits

Which would be a problem for a community with a traditional economy

People in the country begin to want and need products that cannot be made or traded locally

In a command economy, how are economic decisions made

government planners

Which would be a problem in a command economy

People would get rich

In a market economy, how are economic decisions made

individuals starting new businesses

Who takes on the financial risk in starting a new business in a market economy

individual business people

Why are most modern economics referred to as mixed economies

Poverty is always highest in countries with market economies

Why do most economies in the world today operate somewhere in between a market economu and a command economy

Most economies have found they need a mix of free market and some government control to be sucessful and protect comsumers

The economies of South Africa and Nigeria are both

tradational economies

What is South Africa's main export

gold and diamonds

Which country has the largest per capita GDP?

South Africa

Wjy was Nigeria formerly under a command economic system

The country was under military rule

What does the chart indicate that might be a concern about the economy of South Africa?

The county has a high unemployment rate

How does voluntary trade help the economy

It encourages specialization and usually means more profit

Why is specialization so valuable in international trade today

Specialization allows people to do a more efficient job at producing what they make best and trade for the things they need

In which has South African specialized

gold and diamonds

In which has Nigeria specialized

Oil production

What part of the US oil is imported from Nigeria

15 percent

How has Nigeria's concentration on oil hurt that country's overall economy

Agriculture has suffered greatly and now Nigeria has to import FOOD

In which areas could Kenya and Uganda plan together to specialize

cotton production and textile manufacturing

What is a tariff

a tax placed on goods COMING INTO one country from another

What us a quota

a limit on the amount of foreign goods allowed into a country

whaty is an embargo

a halt to trade with a particular country for economic or political reasons

how could a high tariff on imported grain help the people in the country charging the tariff

Local farmer will be able to sell their grain since it would be cheaper than imported grain

Why did a number of the countries of the United Nations have an embargo on South Africa

They wanted South Africa to end apartheid

Why is a system of currence exchange necessary for international trade

There must be a way to pay for goods purchased from countries with different types of currencies

The CFA Franc is used in what part of Africa

in West and Central Africa

Which is part of a country's human capital

skills and knowledge workers have

Why has the country of South Africa made a big investment in human capital

The country needs more skilled and educated workers

What accounts for the high unemployment rate in South Africa

Unemployed blacks are still feeling the affects of the Apartheid Systrm

What is the Gross Domestic Product

total value of goods and services produced by a country

If a country does not invest in its human capital, how can it affect the country's Gross Domestic Product

GDP may go down because poorly trained workers will not be able to do their jobs as well

What are capital goods

the factories and machines used to make goods

In which has South Africa invested heavily in capital goods

mining and heavy industry

In whi has Nigeria invested heavily in capital goods

oil production and refining

How had Nigeria's decision about investing in capital goods affected many of those who live in Nigeria

Concentration on the oil industry has left Nigerians without proper housing and food

What becomes of much of the money earned from the sale of African gold and diamonds

The money goes to pay for weapons used in wars and civil conflicts

What are some of the commericail uses of iranium

nuclear power plants and nuclear weapons

which is aresult of Nigeria's focus on the oil industry

lack of improvements in agriculture

Which African country has 40 percent of the world's gpld supply

South Africa

How are the profits from diamonds being used today in many African countries

Profits fund military supplies and civil wars

What are "Conflict diamonds"

diamonds that are sold to fund wars and rebellions

Describe an Entrepreneus

Someone wh ois willing to take a risk to begin a new business

Describe Income

money you earn from working or get from investing

Define savings

money left overf after buying what is needed and wanted

What is a plan for saving and spendign

budget

Whenan individual invests money in bank accounts or mutual funds

a financial investment

when a firm invest money in equipment, factories, or real estate

REAL INVESTMENT

The ability to borrow money is called

credit

Credit becomes a problem when

a person cannot find the money to pay their monthly bills

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