LA Government and Economics

In the mid-twentieth century, the Cuban government took control of all US-owned oil

refineries located in Cuba in order to run the refineries themselves. This government

action is characteristic of a country with what type of economy?

• a mixed economy

• a pure command economy

• a pure market economy

• a traditional economy

In which type of government do citizens directly elect the leader of the national

government?

• parliamentary autocracy

• presidential autocracy

• parliamentary democracy

• presidential democracy

What should a government do to increase literacy rates in its country?

• encourage companies to invest in capital goods

• reduce economic barriers to foreign trade

• invest in the human capital of its people

• promote the creation of numerous unskilled jobs

What reduced barriers to trade between buyers and sellers in the United States, Mexico,

and Canada?

• the North Atlantic Treaty Organization

• the League of Nations

• the North American Free Trade Agreement

• the United Nations

Which natural resource is the MOST economically important to both Mexico and Brazil?

• diamonds

• silver

• petroleum

• uranium

What is the purpose of specialization?

• to increase the efficiency of production

• to increase the volume of production

• to create a negative balance of trade

• to create an economic barrier to trade

Which barrier to trade sets a limit on the number of certain goods that can be imported?

• an embargo

• a tariff

• a quota

• a sanction

For many years, the United States maintained an embargo on Cuba. What was the

purpose of this trade barrier?

• to lower prices for American consumers

• to punish Cuba for its political alliances

• to protect domestic industries from competition

• to raise the wages of workers in the United States

How do mixed economies answer the three basic economic questions?

• The past will guide producers in what goods to produce, how to produce them, and for which consumers to produce them. The past will guide all decisions.

• The government will decide what goods to produce, how to produce them, and for which consumers to produce them. The government will make all decisions.

• Supply and demand will guide producers in what goods to produce, how to produce them, and for which consumers to produce them. All economic decisions will be guided by supply and demand.

• Supply and demand will guide the producers in what goods to produce, how to produce them, and for which consumers to produce them. The government will intervene to ensure fairness and productivity.

Hunting and gathering, subsistence agriculture, and the barter system are characteristics

of which type of economy?

• a traditional economy

• a market economy

• a command economy

• a mixed economy