Latin American Economics

Who makes economic decisions in a command economy?

• market

• producers

• consumers

• government

What economic system is most closely related to the country of Cuba?

• traditional

• command

• mixed market

• free market

What three economic questions are asked when studying the similarities of traditional, command, market, and mixed economies among nations of the world?

• What to produce, why to produce, when to produce?

• What is your opportunity cost, what economic resources are needed, why should these resources be used?

• What to produce, how to produce, and for whom to produce?

• What is your opportunity cost, why are economic resources needed, when should these resources be used?

The indigenous people made economic decisions based on customs or beliefs. What type of economic system did they have?

• traditional

• command

• mixed market

• free market

Which of the following would reflect a country with a mixed economy?

• Prices and wages are solely regulated by a country’s government.

• A combination of privately-owned industry and government control.

• A country’s distribution of resources is based on inheritance.

• Prices and wages are determined by the laws of supply and demand rather than being regulated by a country’s government.

What do the economic systems of Brazil and Mexico have in common?

• Both are examples of pure market economies.

• Both are examples of mixed economies.

• Both are examples of traditional economies.

• Both are examples of command economies.

What is an example of a physical trade barrier?

• mountain

• tariff

• quota

• embargo

The North American Free Trade Agreement (NAFTA) is an example of which pattern of behavior among countries?

• imposing trade tariffs

• establishing trade quotas

• forming trade agreements

• putting trade embargos in place

The literacy rate for the region of Latin America is 90%. In the country of Haiti, the literacy rate is 51%. Which statement best reflects these factors of economic growth in Haiti?

• Haiti’s low investment in human capital lowers the GDP per capita.

• Haiti has greater opportunity for other capital investments than education.

• Haiti’s GDP per capita would decrease if there was more investment in human capital.

• Haiti’s high investment in human capital lowers the GDP per capita.

Which of the following is an example of specialization?

• Venezuela has only one main export to trade which is oil.

• Brazil trades a great variety of resources with other countries.

• Mexico has many exports such as silver, oil, and corn.

• Cuba is unable to trade the US because of the embargo.