Latin America Economics Quiz

Shared by the community, based on customs, produced by hunting" In which kind of economy is the product above sold?

• Traditional economy

• Command economy

• Market economy

• Mixed economy

What is the best definition of command economy?

• An economic system where supply and price are regulated by the government rather than market forces.

• An economic system based on private ownership and the free market.

• An economic system where decisions regarding production and investment are embodied in a plan formulated by a central authority.

• An economic system that combines elements of both capitalism and socialism.

The BEST definition of "market economy" is

• An economic system where decisions regarding investment, production, and distribution are based on supply and demand

• A system where the government controls all economic activities

• An economy where goods are bartered rather than bought or sold

• A closed economy with no external trade

When thinking about the economic continuum, which of the following countries is closest to having a pure command system?

• Cuba

• Mexico

• Brazil

When thinking about the economic continuum, which of the following is closest to having a pure market system?

• United States

• Mexico

• Brazil

• Cuba

Since no country is purely market or command, countries have which of the following type of economic system?

• Market economy

• Command economy

• Mixed economy

Bolivia is a landlocked country. When a country or state is landlocked, that is an example of a natural trade barrier.

• True

• False

How does specialization encourage trade between two countries?

• By increasing competition and reducing prices

• By allowing countries to focus on producing goods they are most efficient at, leading to increased overall production and trade

• By imposing tariffs on imported goods

• By reducing the quality of goods

What is the purpose of a tariff, such as a protective tariff?

• To regulate the quantity of goods coming into a country

• To raise government revenue

• To protect domestic industries from foreign competition

• To enhance the export of domestic goods

Which trade barrier discourages trade by placing a tax on foreign goods?

• Quotas

• Tariffs

• Embargoes

• Standards