African Economic Systems DBQs
Artifact A
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African Economic Systems DBQs
http://schools.paulding.k12.ga.us/ischooldistrict/media/files/2218/Unit%205%20SS7E1abc%201112.pdf
1. Based upon the information from the chart and Venn Diagram for Artifact A, what are some of
the benefits of a pure market economy for South Africa? L6-8RH7
2. What are some of the problems that have arisen for South Africa's market economy? L6-8RH7
3. Based upon the information from the chart and Venn Diagram for Artifact A, what are some of
the benefits of a command economy for Nigeria? L6-8RH7
4. What are some of the problems that have arisen for Nigeria's command economy? L6-8RH7
5. How would Nigeria and South Africa be affected if their economies were mixed economies? L68RH1, L6-8RH7
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African Economic Systems DBQs
Artifact B
Mixed Economies
The mixed economy works because the two primary players, the private sector and public sector,
benefit each other. The private sector’s goal is to make profit. For every dollar in revenue for the private
sector, there is a tax that goes directly to some level of government. The public sector can then afford to
continue providing its services to the people, which include but is not limited to, the businesses. Citizens
also pay taxes through either goods and services from the private sector or public sector.
What are the advantages of a mixed economy? The first advantage of a mixed economy is that is allows
for competition among producers and manufacturers with enough government regulations in place to
protect the society. Another advantage of a mixed economy is right of people and businesses to
produce, sell, and decide on their own prices.
What are the disadvantages of a mixed economy? The wrong regulation on economic processes can be a
catastrophe to certain features of production. Another disadvantage is that merchants and business
must locate markets for their goods and services. They also have no control over the taxes they are
required to pay. Taxes can also be an advantage, because they provide revenue for the government to
support its citizens and infrastructure.
Here are a few more examples of a mixed economy in action. Economic freedoms consist of the right to
start your own business, hire employees, fire employees, and sell goods and services for a profit. The
government not only regulates these activities so that other businesses and civilians are ensured
consumer safety, but also to try and keep everyone on a level playing ground, such as equal
employment regulations. The government does not just regulate these businesses, but also taxes them
in order to provide a plethora of goods and services proven nonprofitable by the private sector, such as
libraries, education, hospitals, and sanitation.
http://www.mixedeconomy.org/
6. What are the financial advantages of a mixed economy for the government and mixed citizes
according to the article? L6-8RH1
7. What are some economic freedoms that small businesses and individuals receive under a mixed
economy? L6-8RH1
8. What are some disadvantages to a mixed economy? L6-8RH1
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African Economic Systems DBQs
Artifact C
South Africa Economy:
South Africa has a mixed market economy. Similar to the United States, South Africa’s economy is
subject to government regulation, but is driven by competition and a free market. Based on this reality,
the historical legacy of racial divides and inequality existing between South Africa’s populations is
critical. As Jill Nattrass writes, in a mixed market economy such as South Africa’s, skill sets make
individuals more or less valuable to the economic system (Nattrass, 1989) [19]. This truth indicates the
danger of ongoing economic inequality that has existed in South Africa and continues today. Those
lacking education, training, or access to those areas in which education and training can be utilized, are
ultimately less successful within South Africa’s economic system. This inequality occurs across racial
divides, and is also defined through provincial areas. South Africa’s wealth inequality presents a puzzling
economic duality. While South Africa boasts those institutions integral to the world’s most economically
successful nations, the country simultaneously presents characteristics associated with developing
nations, like uneven distribution of income and wealth. This provides a unique lens through which to
explore South Africa’s current and future economic health.
http://sitemaker.umich.edu/seminar.497.2010.southafrica/economy_and_security
9. What is the connection between apartheid and racism in South Africa and its current economy?
L6-8RH1
10. What is the reality for the less skilled and less educated in South Africa under the mixed market
economy? L6-8RH1
11. What are some of the characteristics that South Africa shares with less developed countries
although it is one of the most economically successful nations? L6-8RH1
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African Economic Systems DBQs
Artifact D
Free market economies
Markets enable mutually beneficial exchange between producers and consumers, and systems that rely
on markets to solve the economic problem are called market economies. In a free market economy,
resources are allocated through the interaction of free and self-directed market forces. This means that
what to produce is determined consumers, how to produce is determined by producers, and who gets
the products depends upon the purchasing power of consumers. Market economies work by allowing
the direct interaction of consumers and producers who are pursuing their own self-interest. The pursuit
of self-interest is at the heart of free market economics.
http://www.economicsonline.co.uk/Competitive_markets/Economic_systems.html
Command economies
The second solution to the economic problem is the allocation of scarce resources by government, or an
agency appointed by the government. This method is referred to as central planning, and economies
that exclusively use central planning are called command economies. In other words governments direct
or command resources to be used in particular ways. For example, governments can force citizens to
pay taxes and decide how many roads or hospitals are built.
Command economies have certain advantages over free market economies, especially in terms of the
coordination of scarce resources at times of crisis, such as a war or following a natural disaster. Free
markets also fail at times to allocate resources efficiently, so remedies often involve the allocation of
resources by government to compensate for these failures.
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African Economic Systems DBQs
http://www.economicsonline.co.uk/Competitive_markets/Economic_systems.html
Mixed economies
Mixed economies may have a distinct private sector, where resources are allocated primarily by market
forces, such as the grocery sector of the UK economy. Mixed economies may also have a distinct public
sector, where resources are allocated mainly by government, such as defense, police, and fire services.
In many sectors, resources are allocated by a combination of markets and panning, such as healthcare
and, which have both public and private provision.
http://www.economicsonline.co.uk/Competitive_markets/Economic_systems.html
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African Economic Systems DBQs
12. Based upon Artifact D, what is connection between a market economy and what you have
learned about the economies of African countries? L6-8RH1
13. Based upon Artifact D, what is connection between a command economy and what you have
learned about the economies of African countries? L6-8RH1
14. Based upon Artifact D, what is connection between a mixed economy and what you have
learned about the economies of African countries? L6-8RH1
15. Which economic model provides individuals with the greatest opportunity to gain wealth and
improve their financial situation in African countries? L6-8RH1
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