Unit 5 Africa Economic Unit 5 Africa Economic VocabularyVocabulary

Famine -Famine -

A severe shortage of food, generally A severe shortage of food, generally affecting a widespread area and affecting a widespread area and large numbers of people and can be large numbers of people and can be caused by natural disasters, caused by natural disasters, desertification, and war. desertification, and war.

Deforestation -Deforestation -

The clearing andThe clearing and cutting down of cutting down of trees to use as fuel for heating trees to use as fuel for heating homes; as a resource to export for homes; as a resource to export for timber or furniture; and to free up timber or furniture; and to free up land for farming. land for farming.

Desertification -Desertification -

The transformation of an area that The transformation of an area that was suitable for agriculture and/or was suitable for agriculture and/or vegetation into desert, which is vegetation into desert, which is unsuitable to vegetation. unsuitable to vegetation.

Water Pollution -Water Pollution -

The lack of safe drinking water The lack of safe drinking water (potable water) that negatively (potable water) that negatively affects the development of a country affects the development of a country because it is the source of many because it is the source of many diseases causing sickness and death. diseases causing sickness and death.

Arable LandArable Land --

Land that is good for farming and Land that is good for farming and grazing where the soil is rich with grazing where the soil is rich with nutrients and supports vegetation. nutrients and supports vegetation.

Cash Crops -Cash Crops -

Commercial farming where a large Commercial farming where a large quantity of a crop is grown with the quantity of a crop is grown with the intention of selling it for money. intention of selling it for money.

Subsistence Farming Subsistence Farming - -

Farmers who grow crops to feed their Farmers who grow crops to feed their animals and their families; very few animals and their families; very few crops, if any, are left over to be sold crops, if any, are left over to be sold for income. for income.

Market Economy -Market Economy -

Individuals and businesses make Individuals and businesses make economic decisions, people can start economic decisions, people can start a business, sell their labor, and are a business, sell their labor, and are free to spend their money as they free to spend their money as they wish; supply and demand typically wish; supply and demand typically determines prices. determines prices.

Command Economy -Command Economy -

An economic system where the An economic system where the government controls the production government controls the production and decides what products are to be and decides what products are to be made, how the products are to be made, how the products are to be made, and the price the products will made, and the price the products will be sold. be sold.

Traditional Economy -Traditional Economy -

Economies in which people depend Economies in which people depend on basic agricultural activities as well on basic agricultural activities as well as hunting and gathering to earn a as hunting and gathering to earn a subsistence living. Social roles and subsistence living. Social roles and culture determine how goods and culture determine how goods and services are produced, what prices services are produced, what prices and individual incomes are, and and individual incomes are, and which consumers are allowed to buy which consumers are allowed to buy certain goods. certain goods.

Traditional EconomyTraditional Economy

Continuum -Continuum -

The range between pure market and The range between pure market and pure command economic systems. pure command economic systems. Most economies are considered Most economies are considered mixed because you will find different mixed because you will find different forms of a mixed economy forms of a mixed economy containing aspects of both market containing aspects of both market and command economies.and command economies.

Entrepreneur -Entrepreneur -

a person willing to take a risk by a person willing to take a risk by investing his or her own capital (land, investing his or her own capital (land, labor, building, money) in an attempt labor, building, money) in an attempt to make a good or provide a service; to make a good or provide a service; the goal is to make a profit. the goal is to make a profit. Entrepreneurship helps the economic Entrepreneurship helps the economic growth of a country. growth of a country.

Bill GatesBill Gates

Government Stability -Government Stability -

When a government is strong When a government is strong enough to provide its citizens basic enough to provide its citizens basic rights, adequate living facilities or rights, adequate living facilities or education, an economy that is education, an economy that is wealthy, and a government that does wealthy, and a government that does not have a lot of corruption. not have a lot of corruption. Government Instability would be the Government Instability would be the opposite.opposite.

AIDS -AIDS -

A disease that slowly attacks and A disease that slowly attacks and destroys the human immune system destroys the human immune system that keeps the body healthy, and has that keeps the body healthy, and has become a very serious problem in become a very serious problem in Africa because it affects a higher Africa because it affects a higher percentage of people on the percentage of people on the continent than any other place in the continent than any other place in the world. world.

AIDSAIDS

Foreign Investment -Foreign Investment -

Companies or nations spending Companies or nations spending money to develop money to develop industries/businesses in foreign industries/businesses in foreign countries; the attraction is typically countries; the attraction is typically the availability of cheap labor; cheap the availability of cheap labor; cheap labor allows for larger profits which is labor allows for larger profits which is a form of exploitation.a form of exploitation.

Economic Growth -Economic Growth -

The process by which a country’s The process by which a country’s wealth increases over time and is wealth increases over time and is generally measured by increases in a generally measured by increases in a country’s gross domestic product. country’s gross domestic product.

Human Resources -Human Resources -

The labor/work used to make a good The labor/work used to make a good or provide a service; healthcare, or provide a service; healthcare, education, and training increase education, and training increase labor output (amount and quality of labor output (amount and quality of work done). work done).

Capital Resources -Capital Resources -

The machines, buildings (factories), The machines, buildings (factories), technology, and money used to technology, and money used to make a good or provide a service. make a good or provide a service.

Tariff -Tariff -

A tax on imported goods. A tax on imported goods.

Quota -Quota -

A limit on the quantity of a good that A limit on the quantity of a good that can be imported into a country in a can be imported into a country in a given period of time. given period of time.

Embargo -Embargo -

A refusal to trade with another A refusal to trade with another country in order to punish the country in order to punish the country economically without having country economically without having to go to war.to go to war.

Arm embargo against SudanArm embargo against Sudan