Economics of Latin America

Why does Cuba have to import many products?

• It's economy leans more toward a command system.

• It is an island country.

• It is an island country with fewer natural resources than many other countries.

• It is an island country that has an abundance of natural resources.

Which of the follow is one of the three questions asked when comparing economic systems?

• What are your economic resources?

• How will the goods be produced?

• What is the cost to produce goods?

• Should this risk be taken?

Which is a logical conclusion for a country with a high GDP?

• It has a high literacy rate.

• It has a low literacy rate.

• Literacy is not a priority in the country.

• There is no relationship between a country's literacy rate and GDP.

What factor of economic growth would increase a country's literacy rate and therefore it's GDP?

• investment in capital goods

• investment in the stock market

• investment in real estate

• investment in human capital

Which choice is an investment in capital goods?

• Building a fancy office building

• Updating the companies logo

• Updating the companies technology

• Putting in vending machines for employees to use

What countries are part of NAFTA?

• United States, Mexico, Congo

• United Kingdom, Mexico, Canada

• United States, Morocco, Canada

• United States, Mexico, Canada

Which of the following Latin America countries is closest to a market economy?

• Brazil

• Mexico

• Venezuela

• Cuba

What 3 factors are true if literacy rate is increased?

• People are able to improve their lives.

• A nation's industry improves.

• The government will stop supporting education.

• People will be able to get better jobs.

Why is Mexico's economy considered a mixed-market economy?

• There are more private than public businesses.

• There are more public than private businesses.

• There are no public businesses.

• There are no private businesses.

What economic factors would you have to consider to trade with another country?

• There type of currency

• The exchange rate

• The trade barriers that may be in place

• The population and GDP of that country