Economic Systems in Latin America

Which of the following would reflect Mexico's mixed economy?

• prices and wages are solely regulated by the country's government

• a combination of privately owned businesses and government regulation

• the country's distribution of resources is based on inheritance

• all economic decisions are based on customs and beliefs of ancestors

How does a country decide with whom to trade?

• They choose a country that they like the best.

• They choose the country that their ancestors came from.

• They choose a country that is very similar to their own.

• They choose a country that has the goods and services that they need and can get at the best price.

Which Latin America economy has the most FREE (from government control) mixed economy?

• Mexico

• Brazil

• Cuba

• None of the above

Which of the following Latin America countries is closest to a market economy?

• Brazil

• Mexico

• Venezuela

• Cuba

Which of the follow is one of the three questions asked when comparing economic systems?

• What are your economic resources?

• How will the goods be produced?

• What is the cost to produce goods?

• Should this risk be taken?

If a government increases regulations on the production and distribution of goods and services, entrepreneurship will improve.

• True

• False

• I have no idea!

What guides the 3 economic questions in a mixed economy?

• supply and demand with some government regulations

• the government with some private regulations

• decisions passed down by ancestors

• Nothing. It just works itself out.

Investing in human capital means spending money on ...

• education and training

• developing natural resources

• factories and businesses

• machinery and technology

Why are most economies referred to as mixed economies?

• there are not any traditional economic systems left

• government planners no longer have complete control over command systems

• most countries have aspects of both market and command economies

• economic poverty is too great in a pure market system

Why is it important for a business to understand the currency exchange system?

• So they can make all money the same.

• So they can do business with only those countries that exchange at a higher rate.

• So they know the value of their money versus that of their trading partner so they can trade goods.

• So they know which bank to go to for exchanging the currency.