Business Freedom Quiz

Which of the following countries has the least freedom to do business?

• Brazil

• Cuba

• Canada

• Mexico

Brazil is building new factories and using new technology. These are examples of:

• Investment in human capital

• Investment in natural resources

• Opportunity Costs

• Investment in capital goods

Which of these BEST describes the economy of Brazil?

• a market-based economy with hardly any central economic planning

• a command economy with hardly any market-based economic activity

• a market-based economy with a fair amount of central economic planning

• a command economy with a fair amount of market-based economic activity

How can Brazil improve entrepreneurship?

• by limiting access to nonrenewable resources

• by nationalizing economically important industries

• by increasing regulations on the private sector

• by making it easier to start a new business

Cattle ranching is important for Brazil's economy. However, large herds of cattle need lots of space to graze. Which of the following industries would MOST LIKELY suffer if cattle ranching expanded in Brazil?

• agriculture

• lumber

• manufacturing

• mining

What is true about literacy rate and how well off people are (or, the standard of living) in a country?

• The higher the literacy rate, the higher the standard of living.

• The lower the literacy rate, the higher the standard of living.

• There is no relationship between the two.

What would be the BEST way for the government of Mexico to increase entrepreneurship in the country?

• The government should increase regulations on businesses.

• The government should strengthen economic barriers to trade.

• The government should increase investment in human capital.

• The government should strengthen environmental protection laws.

What is an advantage of specialization?

• Factories CANNOT produce goods quickly.

• A factory can produce more goods in less time for less money.

• Workers do NOT become experts in their jobs.

A student decides to open his own lemonade stand in order to make money to buy an Xbox. This is an example of:

• Human Capital

• Capital Good

• Natural Resource

• Entrepreneur

Mr. Cunningham decides to send each of his new employees to a training to teach them how to become better salesmen. This is an example of:

• Investment in capital goods

• Investment in natural resources

• Investment in human capital

• Opportunity Costs