Economic Understandings of Latin America Concept Packet

What type of economy is based on customs and traditions?

• Command

• Market

• Traditional

• Mixed

Which Latin American country’s economy is most controlled by the government?

• Brazil

• Mexico

• Argentina

• Cuba

Which economic system relies on individual choice and private businesses making decisions?

• Traditional

• Mixed

• Command

• Market

What type of economic system do Brazil and Mexico both have?

• Command

• Mixed Market

• Pure Market

• Traditional

What is bartering?

• Using credit to trade goods

• Trading without using money

• Paying with foreign currency

• Government-controlled trade

What are the three basic economic questions every system must answer?

• When to sell, what to trade, who to contact

• What to produce, how to produce, for whom to produce

• Where to work, when to work, why to work

• What to earn, how to save, where to invest

What is a tariff?

• A limit on the number of exports

• A complete ban on trade

• A tax on imported goods

• A tax on domestic products

Why is currency exchange necessary for international trade?

• Every country has the same value of money

• Not all countries use money

• Countries use different currencies with different values

• Only U.S. dollars are accepted globally

What has been a major investment in human capital for Brazil, Mexico, and Cuba?

• More military spending

• Free public education

• Exporting labor

• Expanding factories

What was one major goal of NAFTA (USMCA)?

• Stop all imports

• Create one common currency

• Make trade easier between the U.S., Canada, and Mexico

• Expand immigration to North America