Latin American Economics Review TRMS 6SS

​Latin American
Economics

Multiple Choice

Products brought into a country

• Currency
• Export
• Import

Multiple Choice

Products sold to other countries

• Import
• Export
• International trade

Literacy Rate

Literacy is the ability to read and write.

Literacy rate is the percentage of adults in a country who can read and write.

Literacy Rates below 99% is not good enough.

100% literacy is not achieved due to a combination of poverty, learning disabilities, inadequate educational resources, and other issues.

In Mexico, Brazil, and Cuba, government investment in education has led to higher literacy rates.

investment in education has also contributed (added) to a higher standard of living.

When individuals cannot learn to read and write their future opportunities are limited.

When large numbers of people in a country are illiterate, the entire country may experience poverty.

How does a country's literacy rate impact their economy?

Turn & Talk

Multiple Choice

What factor of production have Cuba, Mexico, and Brazil invested in to increase their literacy rate?

• Human Capital

• Capital Goods

• Natural Resources

Multiple Choice

Which of the following correctly shows the relationship between literacy rates and standard of living?

• High Literacy = High Standard of Living

• High Literacy = Low Standard of Living

Multiple Choice

How does high literacy rates benefit a country's economy?

• Workers can get jobs that pay well that requires reading and writing skills.

• There are more factories in countries with high literacy rates.

• When children can read and write, they won't be used for child labor.

Focusing on the resources available in order to produce the best goods and services

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Specialization

Not having all of the necessary resources to produce all needs and wants

​

Scarcity

How do scarcity and specialization lead to trade?

Turn & Talk

Multiple Choice

Why do countries trade with each other?

• to get things they want and need

• to pay for transportation

• to make other countries rich

Multiple Choice

The term that means a country does not have all of the resources to satisfy its wants and needs is:

• Literacy Rate

• Scarcity

• Specialization

Multiple Choice

Nation A produces cars more efficiently than it can grow food crops.

Nation A produces cars and buys food from Nation B.

What are these two countries doing?

• Scarcity
• The Factors of Production
• Specialization

Each country’s currency has a different value, which can make trading goods between countries more complicated.


International trade requires a system of currency exchange, or exchanging one country’s currency from another.


Currency exchange makes trade possible.

​Currency Exchange

Currency Converter | Foreign Exchange Rates | OANDA

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Multiple Choice

$100 U.S. dollars converts to:

Mex$ 1,780 (Mexican Pesos)

R$ 524 (Brazilian Reals)

If you were an American business, where would your U.S. Dollars purchase you more goods?

• Mexico

• Brazil

Multiple Choice

Why must currency be exchanged between countries?

• Each currency has its own value.

• Countries only accept U.S. dollars

• Scarcity makes trade necessary

• Natural Resources

• Human Capital

• Capital Goods

• Entrepreneurs

All the resources needed to produce goods and services.

Factors of Production

Why do we need all of the factors of production?

​Turn and Talk

Why do we need the factors of production?

If a country or business is missing any of the factors of production, they cannot produce.

Countries or businesses must invest in their factors of production to efficiently produce the best goods and services.

Multiple Choice

If a country has old technology and factories, this is a problem with...

• Capital Goods

• Human Capital

• Entrepreneurship

Multiple Choice

If a country does not allow people to start businesses, this is a problem with

• Capital Goods

• Natural resources

• Entrepreneurship

Multiple Choice

If a country has a poor education system and healthcare, this is a problem with

• Capital Goods

• Human Capital

• Natural Resources

Gross Domestic Product

• the total value of goods and services produced in a year within that country

• can show how large an economy is as well as whether or not it is growing each year

• countries with larger GDPs are more influential in the global economy

​Country	​GDP
​Mexico	1,856,36​
​Brazil	2,185,821​
​Cuba	107,352​

GDP per capita

• divide the total Gross Domestic Product by the country’s population

• can indicate a country's standard of living

• when a country's factors of production (natural, human, capital, entrepreneurs) are strong, the GDP per capita increases

​Country	​GDP	Population	​GDP per capita
​Mexico	1,856,36​	130,861	14,185​
​Brazil	2,185,821​	211,998	10,310​
​Cuba	107,352​	10,979	9,605​

Multiple Choice

Which country has the LARGEST economy?

• Mexico

• Brazil

• Cuba

Multiple Choice

Which country has the STONGEST/BEST economy?

• Mexico

• Brazil

• Cuba

Multiple Choice

Which is true regarding the impact of the 4 factors of production on GDP per capita for a country?

• Investing in the factors of production should increase GDP

• Investing in the factors of production should decrease GDP

• Decreasing investments in the factors of production should increase GDP

Multiple Choice

Country X has a high GDP per capita. Country Y has a much lower gdp per capita than Country X.

Which of the following statements is MOST LIKELY correct?

• Citizens in country Y have a higher standard of living.

• Citizens in country Y have less access to education

Multiple Choice

The country of Reading has a literacy rate of 99%. Based on that information, what can be inferred?

• The workers have valuable human capital

• The country has a low GDP

• The businesses have high value capital goods

Multiple Choice

Does Brazil or Cuba have a more favorable economic system for entrepreneurs? Why?

• Brazil, because the Brazilian government directly controls almost all industries in Brazil.

• Brazil, because the Cuban government directly controls almost all industries in Cuba.

• Cuba, because the Brazilian government directly controls almost all industries in Brazil.

• Cuba, because the Cuban government directly controls almost all industries in Cuba.

Multiple Choice

Which class is your favorite?

(there is one correct answer if you want points)

• Social Studies

• Science

• Math

• Language Arts