Economic Understandings To play the game, go to the next slide and click on an underlined point value to go to a question. To go to final Wrap-Up click on Final Wrap-Up at the bottom of the main screen.

Economic Systems Specialized Economies Capital Investments Resources Personal Finance Trade Barriers 10 Points 20 Points 30 Points 40 Points 50 Points 10 Points 20 Points 30 Points 40 Points 50 Points 10 Points 20 Points 30 Points 40 Points 50 Points 10 Points 20 Points 30 Points 40 Points 50 Points 10 Points 20 Points 40 Points 50 Points 10 Points 20 Points 30 Points 40 Points 50 Points Final Wrap-Up

In a traditional economy, how are economic decisions made?

Customs and habits are used to make economic decisions.

Who makes decisions in a market economy?

Individuals

In what type of economy would you find entrepreneurs?

Market Economy

Who makes the decisions in a command economy?

Government planning groups

Why do most world economies operate somewhere between a market economy and a command economy?

Most economies have some characteristics of a free market with some government planning and control.

Why is specialization important in international trade?

Specialization allows people to be more efficient at producing what they make best and trade for things they need.

In what industry has South Africa specialized?

Precious minerals

In what industry has Nigeria specialized?

Oil

In what industries could Kenya and Uganda plan together?

Cotton production and textile manufacturing

What is the purpose of voluntary trade?

It encourages specialization and usually means more profit.

What type of trade barrier results in taxes on imports?

Tariff

What type of trade barrier results in limits placed on the number of imports that can enter a country?

Quota

What type of trade barrier involves a government order to stop trade with another country?

Embargo

Why did a number of members of the United Nations place an embargo on South Africa?

They wanted to pressure South Africa to end apartheid.

How could a high tariff on imported grain help a country that produces grain?

Local grain would be cheaper than imported grain resulting in people buying from local farmers.

What are two examples of human capital?

Education, training

What term describes the total value of all the goods and services produced within a country in a single year?

GDP (Gross Domestic Product)

What are two examples of investments in capital goods?

Factories and machines

In what industry has South Africa invested in capital and human goods?

Mining and precious minerals

How has the investment in capital goods in Nigeria negatively affected many Nigerians?

Little money is left over to spend on the basic needs of people. As a result, many Nigerians do not have proper food and housing.

What are “conflicted diamonds?”

Diamonds that are mined and sold to fund armed conflicts

Why does the world keep track of where Africa’s uranium is sold and used?

Uranium is an essential ingredient in the manufacture of nuclear weapons.

What African country has approximately 40% of the world’s supply of gold?

Republic of South Africa

What company dominates the diamond business in South Africa?

DeBeers Company

In what area of the continent are most of Africa’s known supplies of oil located?

Mediterranean Coast and eastern section

For what type of items should you use credit?

Large items, e.g., cars, houses

What term describes the ability to borrow money?

Credit

What is the term that describes money left over after buying things one needs and wants?

Savings

What is another word for a plan of savings and spending?

Budget

What is included in income?

Money from working and investing

Make your wager

What three conditions, which exist in many African countries, keep an economy from being strong?

Government and business corruption Government and business corruption Internal fighting and civil war Internal fighting and civil war Military rule