GCA Latin America review 6th grade

According to a magazine article, “One in six adults living in Brazil is either trying to launch a business or is the owner of a new venture less than 42 months old and another one in six is running a more established venture.”

What economic concept is described in the statement?

• Specialization

• opportunity cost

• entrepreneeurship

• Supply and demand

What conclusion can be made about Brazil’s natural resources based on the map?

• The diversity in natural resources leads to more trade.

• An abundance of rubber is found near the coastline.

• A wealth of petroleum is found in the interior regions of Brazil.

• Brazil specializes in one main export.

Mexico is building new factories and using newer technology to develop car air bags.  

Which economic factor is Mexico investing in to grow its economy? 

• literacy

• natural resources

• capital goods

• human capital

Gross Domestic Product (GDP) per Capita

Country Total

Mexico $18,400

Brazil $15,600

Cuba $10,200

What conclusion can be drawn using the information in the chart?

• Mexico invests more in human capital than Brazil or Cuba.

• No information is given to make any conclusion based on the information in the chart.

• Cuba is stronger economically than Brazil or Mexico.

• Brazil will soon become economically stronger than Mexico.

Which of the following statements is TRUE concerning literacy rates and standard of living?

• Cuba has a high literacy rate though its citizens live with unemployment and poverty due to the mismanagement of economies by the corrupt government.

• All Latin American countries with high literacy rates enjoy a high standard of living due to the employment and prosperity of their citizens.

• Brazil with its low literacy rate has been able to overcome and achieve high standards of living for its citizens through hard labor and determination.

• Mexico with its low literacy rate will never be able to raise the standard for their citizens due to language barriers and traditions.

One outcome of United States-Mexico-Canada Agreement (USMCA) is that the United States has lost manufacturing jobs to Mexico.

Which statement explains how this outcome MOST LIKELY affected the goals of the USMCA and why?

• This outcome likely contributed to decreasing imports from Mexico to the United States, and USMCA was supposed to increase imports to the United States.

• This outcome likely contributed to decreasing the standard of living in parts of the United States, and USMCA was supposed to raise the standard of living in participating countries.

• This outcome likely contributed to increasing the free movement of people, and USMCA was supposed to increase the free movement of people.

• This outcome likely contributed to increasing the free movement of people, and USMCA was supposed to increase the free movement of people.

Which BEST explains why countries in Latin America must have a system of currency exchange? 

• Without a system of currency exchange, people in Latin America would not be able to trade because most nations in this region have their own form of currency. 

• A system of currency exchange keeps people from having to pay a lot of personal taxes on the money they earn.  

• A system of currency exchange allows people to use banks in other countries. 

• Without a system of currency exchange, the government could not regulate trade in Latin America.  

The United States started a trade embargo with Cuba in the 1960s.

Why did the United States MOST LIKELY use an embargo with Cuba rather than a tariff?

• An embargo increases taxes on products more than a tariff, and an embargo damages a country's economy more than a tariff.

• An embargo blocks less trade than a tariff and is often used to punish a country rather than to affect the country's economy, while a tariff affects a country's economy.

• An embargo limits the dollar value of imports more than a tariff, and an embargo damages a country's economy less than a tariff.

• An embargo blocks more trade than a tariff and is often used to punish a country by hurting the country's economy, while a tariff is not designed to punish a country.

How does specialization encourage trade?

• When a Latin American country specializes in the production of one product, they must place tariffs on exported goods and imported goods to encourage trade.

• When a Latin American country specializes in the production of one product, they must establish trade restrictions with other countries in order to create all of the goods they need.

• When a Latin American country specializes in the production of one product, they must trade with other countries to get the other products they need.

• When a Latin American country specializes in the production of one product, they must establish embargoes with other countries to get the products they need.

Which statement BEST describes the economic systems of Canada and Brazil?

• Both are based on private businesses and consumers not making all the economic decisions.

• Both are based on the government controlling all the economic decisions.

• Both are based on private businesses and consumers controlling all the economic decisions.

• Both are based on customs and beliefs.