SS6E13

Which statement about the modern Cuban economy is correct?

• The Cuban economy is a pure command economy.

• The Cuban economy is a pure market economy.

• The Cuban economy is a traditional economy with some market elements.

• The Cuban economy is a command economy with some market elements.

What are TWO of the primary goals of the North American Free Trade Agreement (NAFTA)?

• encouraging economic growth in Canada, Mexico, and the United States

• reducing barriers to immigration between Canada, Mexico, and the United States

• creating a mutual defense pact between Canada, Mexico, and the United States

• reducing industrial pollution within Canada, Mexico, and the United States

• eliminating barriers to trade between Canada, Mexico, and the United States

Which statement about trade barriers is correct?

• Tariffs and embargoes are imposed to encourage consumers to purchase more goods.

• Quotas are imposed to encourage producers to improve the quality of goods.

• Tariffs are imposed to encourage consumers to purchase domestic goods.

• Quotas and embargoes are imposed to encourage international trade.

Why do countries trade with each other?

• Most countries cannot efficiently produce everything their populations need.

• Most countries produce a surplus of goods that would be wasted otherwise.

• Most countries trade for foreign currency to promote economic growth.

• Most countries trade with other countries in order to make alliances.

What factor is used to classify economies as market, command, or mixed?

• the number of consumers in the economy

• the number of producers in the economy

• the amount of government involvement in the economy

• the abundance of natural resources in the economy

What factor is used to classify economies as market, command, or mixed?

• the number of consumers in the economy

• the number of producers in the economy

• the amount of government involvement in the economy

• the abundance of natural resources in the economy

In which type of economy does the government control the factors of production?

• mixed economy

• traditional economy

• command economy

• market economy

Why do countries need to have a system for exchanging currency with other nations?

• so they can have a uniform value of currency so they can identify what the value of goods are

• so that they can know which countries' currency have the greatest value so they can buy goods at the lowest cost

• to have an international bank that converts the money of each country so countries can buy and sell goods

• to know the value of their money compared to the value of other countries' money so they can trade goods

What kind of economy does Country X have?

• The government's role in setting the prices of goods shows that Country X has a market economy.

• The government's ownership of the factors of production shows that Country X has a market economy.

• The government's control of the factors of production shows that Country X has a command economy.

• The government's encouragement of entrepreneurship shows that Country X has a command economy.

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 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.