African Economics Unit Test Questions
with Correct Verified Answers
1. Some industries in South Africa are controlled by the government, while
MOST others are controlled by the private sector (individuals &
corporations). What conclusion can be drawn about South Africa's
economy? - ANS ✔South Africa has a market economy with some
command elements.
2. What is the BEST way to describe the economies of Kenya, Nigeria, &
South Africa? - ANS ✔They are mixed economies.
3. Which situation is likely to occur in a pure command economy? - ANS
✔The government owns all businesses.
4. Which TWO situations are likely to occur in a traditional economy? - ANS
✔1) A baker's son becomes a baker.
2) Bartering is a common means of exchange.
5. Which TWO situations are likely to occur in a pure command economy? -
ANS ✔1) The government sets production quotas for goods.
, 2) The government owns all businesses.
6. What is a capital investment that would MOST benefit Nigeria's
economy? - ANS ✔industrial oil-drilling equipment
7. What is a capital investment that would MOST benefit South Africa's
economy? - ANS ✔industrial gold-mining equipment
8. Which is an example of entrepreneurship? - ANS ✔A person uses her own
money to open a business.
9. Which is a major obstacle toward entrepreneurship in Nigeria? - ANS
✔government corruption
10.What does Nigeria specialize in? - ANS ✔oil production
11.Whenever a company sells oil to businesses in other countries, it must
pay a tax to the Nigerian government. What is this an example of? - ANS
✔a tariff
with Correct Verified Answers
1. Some industries in South Africa are controlled by the government, while
MOST others are controlled by the private sector (individuals &
corporations). What conclusion can be drawn about South Africa's
economy? - ANS ✔South Africa has a market economy with some
command elements.
2. What is the BEST way to describe the economies of Kenya, Nigeria, &
South Africa? - ANS ✔They are mixed economies.
3. Which situation is likely to occur in a pure command economy? - ANS
✔The government owns all businesses.
4. Which TWO situations are likely to occur in a traditional economy? - ANS
✔1) A baker's son becomes a baker.
2) Bartering is a common means of exchange.
5. Which TWO situations are likely to occur in a pure command economy? -
ANS ✔1) The government sets production quotas for goods.
, 2) The government owns all businesses.
6. What is a capital investment that would MOST benefit Nigeria's
economy? - ANS ✔industrial oil-drilling equipment
7. What is a capital investment that would MOST benefit South Africa's
economy? - ANS ✔industrial gold-mining equipment
8. Which is an example of entrepreneurship? - ANS ✔A person uses her own
money to open a business.
9. Which is a major obstacle toward entrepreneurship in Nigeria? - ANS
✔government corruption
10.What does Nigeria specialize in? - ANS ✔oil production
11.Whenever a company sells oil to businesses in other countries, it must
pay a tax to the Nigerian government. What is this an example of? - ANS
✔a tariff
