Latin American Econ/Trade Barriers

1. What is true about literacy rate and the standard of living in a country?

• A. The higher the literacy rate, the higher the standard of living

• B. The lower the literacy rate, the higher the standard of living

• C. There is no relationship between the two.

• D. The higher the literacy rate, the lower the standard of living

• E. The lower the literacy rate, the lower the Standard of living

2. Brazil is building new factories and using new technology. These are examples of:

• A. Investment in human capital

• B. Investment in natural resources

• C. Opportunity Costs

• D. Investment in capital goods

3. Which of the following BEST describes the relationship between literacy and poverty in Latin America and elsewhere?

• A. Poverty increases literacy rates.

• B. Poverty decreases literacy rates.

• C. Low literacy rates increase poverty.

• D. High literacy rates eliminate poverty.

4. Which of the following is NOT usually an effect of increased literacy?

• A. People are able to get better jobs.

• B. A nation's government weakens.

• C. A nation's industry improves.

• D. People are able to improve their lives.

5. Why do low literacy rates in a country hinder that country's economic development?

• A. They limit the volume of trade with other countries

• B. They limit the natural resources the country controls

• C. They limit the population's ability to perform skilled labor

• D. They limit the government's ability to control information

6.What would be the MOST effective way for the Brazilian government to improve the standard of living in the country?

• A. The government should nationalize the country's major industries.

• B. The government should increase investment in public education.

• C. The government should create barriers to trade with other countries.

• D. The government should spend less on investments in human capital.

7. Sugar processing is one of Cuba's most important industries. However, production is often slowed by old, inefficient technology. Based on this information, what would would be the BEST way to improve the efficiency of Cuba's sugar industry?

• A. investing in capital goods

• B. investing in human capital

• C. reducing quotas on foreign sugar

• D. increasing tariffs on foreign sugar

8. What is true about specialization?

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

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

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

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

9. The United Nations has decided to limit the amount of equipment that can be sold to Iran for making nuclear fuel. This is an example of what trade barrier?

• A. Tariff

• B. Embargo

• C. Quota

• D. NAFTA

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

• A. Tariff

• B. Embargo

• C. Quota

• D. NAFTA