50 terms

African Economic Understandings - 7th Grade

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
Whenan individual invests money in bank accounts or mutual funds
a financial investment
when a firm invest money in equipment, factories, or real estate
The ability to borrow money is called
Credit becomes a problem when
a person cannot find the money to pay their monthly bills