Latin America Economics

What are the 3 basic economic questions?

• What to produce?

  How to produce it?

  For whom to produce it for?

• What to produce?

  When to produce it?

  Where to produce it?

• Who to produce?

  When to produce it?

  Why to produce?

• Where to produce?

  How much to produce?

  Why to produce it?

What are the 4 types of economic systems?

• Presidential, Parliamentary, Autocratic, Democratic

• Presidential, Parliamentary, Federal, Unitary

• Mixed, Market, Command, & Traditional

• Mixed, Capitalist, Communist, Traditional

Which economic system best fits this description:

Traditions and customs determine how a country answers the 3 basic economic questions, and typically features bartering (trading).

Ex: Native tribes in the Amazon Rainforest

• Command Economy

• Traditional Economy

• Mixed Economy

• Market Economy

Which economic system best fits this description:

Supply and Demand determine how a country answers the 3 basic economic questions, and does not feature any government involvement in the economy.

Ex: None, but Hong Kong and Macao come the closest in fitting this description.

• Market Economy

• Command Economy

• Mixed Economy

• Traditional Economy

Which economic system best fits this description:

The government determines how a country answer the 3 basic economic questions; this type of economic system is usually pursued by Communist countries.

Ex: None, but the Soviet Union, North Korea, and Cuba are close.

• Market Economy

• Traditional Economy

• Mixed Economy

• Command Economy

Which economic system best fits this description:

Supply and Demand help determine how a country answers the 3 basic economic questions, but the government also plays a role in the economy in the form of regulations, government-owned companies, and taxes.

Ex: Almost every country in the world has this economic system.

• Mixed Economy

• Market Economy

• Command Economy

• Traditional Economy

The profit a country makes over a given time period, usually a year is called 

• Gross Domestic Product (GDP)
• Economic System 
• Export
• Import 

What is capital (a capital good)?

• profit a country makes in one year
• anything that stops trade 
• products brought into the country 
• anything used to make money 

A resource that come from the earth are called

• human capital 
• renewable resources 
• nonrenewable resources
• natural resources 

Resources that can be replaced are called 

• capital 
• nonrenewable resources 
• natural resources 
• renewable resources