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Questions and Answers
What does a 'free-market economy' mean?
What does a 'free-market economy' mean?
An economy where the production and distribution of goods and services is determined by supply and demand, without government intervention.
Why might a country with rich resources still be poor?
Why might a country with rich resources still be poor?
Possible reasons include political instability, corruption, lack of infrastructure, poor resource management, and external economic factors.
Why is agriculture important in Guinea-Bissau?
Why is agriculture important in Guinea-Bissau?
Agriculture is important in Guinea-Bissau because it is the main source of food, livelihood, and income for most of the population.
How does having lots of water help a country's economy?
How does having lots of water help a country's economy?
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Why is trade with other countries important for Guinea-Bissau?
Why is trade with other countries important for Guinea-Bissau?
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Study Notes
Economy of Guinea-Bissau
- Guinea-Bissau has a mixed economy, comprising both state-owned and private businesses.
- The country shifted to a free-market economy in 1987.
- Despite being rich in natural resources, Guinea-Bissau is one of the poorest countries in the world.
Agriculture
- Most people in Guinea-Bissau work in agriculture, growing food such as rice, vegetables, and cashews.
- Agriculture is a crucial sector for food and trade, with fishing also being important for food and trade.
- Agriculture is important in Guinea-Bissau due to its potential to provide food and income for the population.
Natural Resources and Power
- Guinea-Bissau has abundant minerals, including bauxite and phosphates, and possibly oil and gold.
- The country has a significant amount of water, especially during the rainy season.
- The Corubal River could be used to generate electricity.
Manufacturing and Industry
- Manufacturing in Guinea-Bissau is mostly small-scale and includes food processing and handicrafts.
- Some industries were damaged during conflicts in the 1990s.
Finance, Trade, and Labour
- The CFA franc is the currency used in Guinea-Bissau, which is shared with other countries.
- Most people in Guinea-Bissau do not use banks frequently.
- The country trades with Portugal, Senegal, India, and other countries.
- Taxes are generated from trade, income, and sales.
- Trade with other countries is important for Guinea-Bissau as it enables the country to access new markets and goods.
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Description
This quiz explores the economy of Guinea-Bissau, including its shift to a free-market economy and the role of agriculture. Learn about the challenges facing this resource-rich but poor country.
