Unit 5 TEST Review

What was one reaction the U.S. had to Cuba taking over property owned by Americans?

• The U.S. threatened a nuclear attack.

• The U.S. put an embargo on Cuban goods.

• The U.S. wanted Cuba to trade with other countries.

• An agreement was reached to limit the number of Cubans entering the U.S.

Which is not an impact of the Cuban Revolution?

• A. the U. S. instituted an embargo against Cuba

• B. Cuba sold more sugar cane

• C. Cuba became allies with the Soviet Union

• D. The people of Cuba lost personal freedoms

A lasting impact of the Cuban Revolution has been

• A. Less political freedom for Cubans.

• B. Less need for trade with other countries.

• C. More leaders chosen by the people

• D. More economic choices for the people.

In order to help the Brazilian shoe industry, some people in Brazil want to put a limit on the number of shoes that can be imported from other countries. This is an example of a(n)…

• A. embargo

• B. tariff

• C. quota

• D. voluntary exchange

Which of the following best describes a country with a market economy?

• A. A person can start any legal business and charge any price.

• B. The government provides food and housing to all workers.

• C. The government provides services, such as telephones and television.

• D. Things are done based on customs and traditions.

Most countries have a mixed economy located on a continuum between pure market and command. What does this statement mean?

• A. Most countries have stores that continue to sell goods only to the government.

• B. Most countries really have traditional economies where they do things they way that they always have.

• C. Most countries have a pure command or pure market economy.

• D. Most countries have a blend of market and command economies. Some are closer to command while others are closer to pure market.

If the leader of a country’s plan is to improve the economy by encouraging companies to invest in new computers and wireless communications systems, he would be basing his plan on the conclusion that:

• A. An investment in human capital will increase a country’s gross domestic product (GDP).

• B. Adjusting the exchange rate will increase the profit the country makes in international trade.

• C. An investment in capital goods will increase the country’s gross domestic product (GDP).

• D. An embargo on technology from other countries will help the economy.

If the leader of a country’s plan is to improve the economy by encouraging companies to provide education and training for employees, he would be basing his plan on the conclusion that:

• A. An investment in human capital will increase a country’s gross domestic product (GDP).

• B. An investment in entrepreneurs will spark creativity in the country.

• C. An investment in capital goods will increase the country’s gross domestic product (GDP).

• D. An investment in natural resources will help the country’s economy.

What roles do the entrepreneurs play in economics?

• A. They are responsible for hiring and managing employees.

• B. They create businesses and bring the other factors of production together.

• C. They train employees to have various skills.

• D. They build the machines and technology needed for businesses.

Natural resources are important to a country’s economy because:

• A. They allow businesses to use materials found in one’s own country, thus cutting costs.

• B. They allow for a wide variety of exports to other countries.

• C. They alone determine a country’s GDP.

• D. Economies without natural resources are always doomed to fail.