15 MCQ on Africa and World Economy with answers

15 MCQ on Africa and World Economy with answers

1. Which of the following is NOT a major challenge facing Africa's integration into the world economy?
   A) Lack of natural resources
   B) Economic inequality
   C) Political instability
   D) Infrastructure deficiencies
   Answer: A) Lack of natural resources

2. Which organization promotes economic cooperation and integration among African countries?
   A) African Union (AU)
   B) World Bank
   C) International Monetary Fund (IMF)
   D) European Union (EU)
   Answer: A) African Union (AU)

3. What is the primary focus of structural adjustment programs implemented in many African countries?
   A) Encouraging foreign investment
   B) Reducing government intervention in the economy
   C) Promoting industrialization
   D) Expanding social welfare programs
   Answer: B) Reducing government intervention in the economy

4. Which of the following is a major contributor to Africa's participation in the global economy?
   A) High levels of industrialization
   B) Advanced technology infrastructure
   C) Exploitation of natural resources
   D) Low population density
   Answer: C) Exploitation of natural resources

5. Which term refers to the economic phenomenon where African countries are primarily exporters of raw materials with little value addition?
   A) Import substitution
   B) Economic diversification
   C) Resource curse
   D) Export-oriented industrialization
   Answer: C) Resource curse

6. Which international trade agreement aims to promote economic development in Africa through increased trade and investment?
   A) NAFTA (North American Free Trade Agreement)
   B) ASEAN (Association of Southeast Asian Nations)
   C) AGOA (African Growth and Opportunity Act)
   D) CFTA (Continental Free Trade Area)
   Answer: C) AGOA (African Growth and Opportunity Act)

7. What role does the informal economy play in many African countries' economic activity?
   A) It is the primary driver of economic growth.
   B) It is heavily regulated by the government.
   C) It contributes little to the overall economy.
   D) It provides employment and income for a significant portion of the population.
   Answer: D) It provides employment and income for a significant portion of the population.

8. Which factor contributes to Africa's vulnerability to external economic shocks?
   A) Strong industrial base
   B) Diverse export markets
   C) Reliance on primary commodity exports
   D) Robust social safety nets
   Answer: C) Reliance on primary commodity exports

9. Which of the following is NOT a potential benefit of foreign direct investment (FDI) in Africa?
   A) Technology transfer
   B) Job creation
   C) Economic diversification
   D) Increased dependency on foreign entities
   Answer: D) Increased dependency on foreign entities

10. Which economic model advocates for African countries to produce goods and services for domestic consumption rather than for export?
    A) Import substitution
    B) Neoliberalism
    C) Export-oriented industrialization
    D) Structural adjustment
    Answer: A) Import substitution

11. What is the term used to describe the phenomenon where African countries borrow heavily from international financial institutions to finance development projects?
    A) Debt relief
    B) Foreign aid
    C) Structural adjustment
    D) Debt dependency
    Answer: D) Debt dependency

12. Which of the following initiatives aims to improve Africa's infrastructure and connectivity with the rest of the world?
    A) Belt and Road Initiative (BRI)
    B) Marshall Plan for Africa
    C) African Development Bank (AfDB)
    D) Millennium Challenge Corporation (MCC)
    Answer: A) Belt and Road Initiative (BRI)

13. What is the term used to describe the movement of skilled labor from Africa to other regions, often resulting in brain drain?
    A) Brain gain
    B) Brain circulation
    C) Brain drain
    D) Talent export
    Answer: C) Brain drain

14. Which of the following is NOT a barrier to Africa's participation in the global economy?
    A) Limited access to finance
    B) Political instability
    C) High levels of education
    D) Weak infrastructure
    Answer: C) High levels of education

15. Which of the following organizations provides financial assistance and development programs to African countries?
    A) World Trade Organization (WTO)
    B) International Monetary Fund (IMF)
    C) African Development Bank (AfDB)
    D) Organization of Petroleum Exporting Countries (OPEC)
    Answer: C) African Development Bank (AfDB)

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