Review for Latin America Governments

What factor hurts economic growth in Mexico the MOST?

• labor shortages

• government corruption

• powerful labor unions

• strict regulation

In what way are the Mexican and Brazilian economies similar?

• They are both mixed economies.

• They are both pure market economies.

• They are both pure command economies.

• They are both traditional economies.

In what way is Mexico's mixed economy like a command economy?

• Private citizens cannot own businesses.

• The government sets all production goals.

• Foreign companies cannot invest in Mexico.

• The government controls the energy industry.

What is true about specialization?

• Factories CANNOT produce goods quickly because their workers are constantly being moved asked to learn new positions.

• Workers do NOT become experts in their jobs because they are not well trained.

• A factory can produce more goods in less time for less money because their workers know very well how to do a specific job.

• Businesses will be quicker in selling their products in spite of the fact that their workers are disorganized.

For many years, the United States maintained an embargo on Cuba. What was the purpose of this trade barrier?

• to lower prices for American consumers

• to punish Cuba for its political alliances

• to protect domestic industries from competition

• to raise the wages of workers in the United States

The United State prohibits all trade with Cuba. This is an example of the following trade barrier:

• tariff

• quota

• embargo

• NAFTA

Which barrier to trade sets a limit on the number of certain goods that can be imported?

• embargo

• quota

• tariff

• NAFTA

• sanction

A student decides to open his own lemonade stand in order to make money to buy an Xbox. This is an example of:

• Human Capital

• Capital Goods

• Natural Resource

• Entrepreneur

the level of wealth and material comfort available to the people of a country.

• capital goods
• specialization
• human capital
• standard of living

percentage of a country's citizens who have the ability to read and write.

• standard of living
• literacy rate
• free enterprise
• quota