African Economics 2: Question Preview (ID: 13827)

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Which is part of a country's human capital?
a) skills and knowledge workers have
b) the amount of goods sold in foreign trade in a year
c) money paid to workers for producing goods
d) taxes collected from a country's workers

Why has the country of South Africa made a big investment in human capital?
a) South Africa has no natural resources to develop.
b) Most schools and universities are free because of foreign investment in the country.
c) Some of that country's most important industries need educated, skilled workers.
d) They were forced to provide training and education by the United Nations.

What accounts for the high unemployment rate in South Africa?
a) Grain production requires few workers.
b) South Africa's industries use foreign workers who put local people out of work.
c) Unemployed black workers are still feeling the effects of the apartheid system.
d) The government does not provide free public education.

What is the gross domestic product (GDP)?
a) the amount collected in taxes from the people of a country in a year
b) the value of all goods and services produced by individually owned businesses in a year
c) the value of all the products a country buys from foreign nations in a year
d) total value of goods and services produced within a country in a year

If a country does not invest in its human capital, how can it affect the country's GDP?
a) Investment in human capital has little effect on a country's GDP.
b) GDP may go down because poorly trained workers will not be able to do their jobs as well.
c) Most workers want to keep their jobs just as they are and do not care about GDP.
d) GDP is only affected if workers pay for the investment out of their own pockets.

What are capital goods?
a) the workers who make the goods and services
b) money available for scholarships to graduate schools
c) money spent to train workers to use new technology
d) the factories and machines used to make goods

South Africa has invested heavily in capital goods for _____________
a) agriculture
b) mining and heavy industry
c) new government buildings
d) space technology

Nigeria has invested heavily in capital goods for ____________
a) agriculture
b) communications technology
c) mining and heavy industry
d) oil production and refining

How has Nigeria's decision about investing in capital goods affected many Nigerians?
a) Concentration on the oil industry has left Nigerians without proper food and housing.
b) Nigerians have had to go back to the gold and salt trade to make a living.
c) Most people in Nigeria are prosperous because of oil wealth.
d) All Nigerian children have a free high school education.

What becomes of much of the money earned from the sale of African gold and diamonds?
a) The profits go back to the citizens of South Africa.
b) All the profits make up bonuses for the gold company executives.
c) The money goes to pay for weapons used in wars and civil conflicts.
d) The money is divided up among the poorer countries in Africa.

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