Latin America Economics

In which type of economic system does the government control what a factory produces and what price it will charge for those products.

• Mixed

• Traditional

• Market

• Command

What is one problem faced by a command economy?

• Education is offered at no cost

• Shortages of food can occur if the government does not prepare for what people need

• The price of housing is set at a low price

• Food prices are set at a low level

How does Mexico and Cuba position themselves on the economic continuum?

• Mexico and Cuba are close to free market

• Mexico and Cuba are close to the middle (mixed)

• Mexico and Cuba are both command economies

• Mexico is close to free market, Cuba is close to command

An economy that is blended between a command and market economy is said to be

• Traditional

• Mixed

• Free market

• Centralized

What is the BEST reason for people to exchange currency?

• Because different countries have different currencies

• To make more money by trading currency

• Most people want to use American dollars to trade

• To use as a peacekeeping strategy when countries are at war with each other

Which is an example of investment in human capital?

• highways

• factories

• trucks

• education

Which is MOST likely to be a country with a high literacy rate?

• little investment in human capital

• a low standard of living

• a high standard of living

• to much investment in capital goods

One disadvantage of NAFTA was it

• small businesses could ship goods across the border freely

• hurt Mexican farmers

• allowed free trade

• Canada, Mexico and the United States agreed on a trade deal

Which country has the least amount of freedom to conduct business?

• Cuba

• Brazil

• Mexico

• Canada

It is important for a country to invest in human capital because businesses

• need money in order to pay its workers

• enjoy workers getting more training and job opportunities

• are more successful when workers have more training and healthcare

• are not responsible for training and healthcare