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Latin America Economy

Total questions: 44

Worksheet time: 4hrs 40mins

Name
Class
Date
1.

Investing in new technology or tools

a)

Human Capital

b)

Capital Goods

c)

Entrepreneur

d)

Natural Resource

2.

Investing in training your workers or citizens

a)

Human Capital

b)

Capital Goods

c)

natural resource

d)

entreprenuers

3.

Building a new factory

a)

Capital Good

b)

Human capital

c)

Natural Resource

d)

entrepreneur

4.

Providing health care for workers

a)

Human capital

b)

capital goods

c)

entrepreneur

d)

natural resource

5.

Which country is more economically free?

a)

Cuba

b)

Mexico

6.

A country that is part market and part command is known as a

a)

Command Economy

b)

Mixed Economy

c)

Traditional Economy

d)

None of the above

7.

Oil, Trees, Water

a)

Human Capital

b)

Capital Good

c)

Entrepreneur

d)

Natural Resource

8.

Bill Gates, Steve Jobs, Jay-z

a)

Natural Resource

b)

Human Capital

c)

Capital Goods

d)

Entrepreneur

9.

Investing in human capital and capital goods will lower a country's GDP

a)

True

b)

False

10.

The three basic economic questions a county must answer are when, why, and how much to produce

a)

True

b)

False

11.

Which of the following is NOT one of the three questions asked when determining a country's economic system?

a)

What goods/service are produced?

b)

Where are goods/services produced?

c)

How are goods/services produced?

d)

For whom are goods/services produced?

12.

How do people in a traditional economy usually exchange goods?

a)

By selling them for money

b)

By using credit/debit cards

c)

By bartering

d)

By writing checks

13.

In which economic system does the government decide what is produced?

a)

traditional

b)

command

c)

market

14.

In which economic system do private businesses decide what is produced?

a)

traditional

b)

command

c)

market

15.

In which economic system do the customs of the past determine what is produced?

a)

traditional

b)

command

c)

market

16.

Which economic system do most democratic countries use?

a)

traditional

b)

command

c)

mixed

17.

When a country focuses on being really good at producing one thing, it's an example of __________

a)

scarcity

b)

specialization

c)

interdependence

18.

What is the purpose of a tariff?

a)

to decrease price of imported goods

b)

to increase the price of imported goods

c)

to increase the price of exported goods

d)

to decrease the price of exported goods

19.

What is a quota?

a)

limit placed on the quantity of imported goods

b)

tax on imported goods

c)

refusal to trade with another country

20.

What is an embargo?

a)

limit placed on the quantity of imported goods

b)

tax on imported goods

c)

refusal to trade with another country

21.

What is human capital?

a)

workers who make goods

b)

factories and machines used to make goods

c)

money used to train workers

d)

Business owners who pay workers

22.

What are capital goods?

a)

workers who make goods

b)

factories and machines used to make goods

c)

money used to train workers

d)

money used for scholarships to universities

23.

Which of the following is an example of investing in capital goods?

a)

Training workers

b)

Hiring teachers

c)

Building new factories

24.

Why is it important for countries to have a system for exchanging currencies from different countries?

a)

Makes the dollar more valuable

b)

Allows banks to deal in different currencies

c)

Makes products costs less

d)

Makes it possible to buy and sell goods in different countries

25.

What problems can arise if a country doesn't invest in human capital?

a)

No money to pay workers

b)

Workers learn the skills their need on their own

c)

Businesses will not pay taxes to get good schools

d)

Uneducated, unskilled, and unhealthy workers are less productive

26.

What's one way that natural resources can help a country economically?

a)

Allows a country to make money by importing these resources from other countries.

b)

Allows a country to make money by exporting these resources to another country

c)

increases a country's dependency on another

27.

What is an entrepreneur?

a)

Someone who provides the money to open and operate a business

b)

Someone who loans money to someone else to open and operate a business

c)

Someone who hires workers for a business.

28.

What is GDP?

a)

a portion of the goods/services produced in a country for a year

b)

total number of imports/exports in a country for a year

c)

total value of goods/services produced in a country for a year

29.

Which of the following is NOT a factor of production that influences a country's economic growth?

a)

Natural resources

b)

Human capital

c)

Capital goods

d)

Tariffs

30.

What's the correlation between a country's literacy rate and their GDP?

a)

The higher a country's literacy rate, the lower its GDP.

b)

The higher a country's literacy rate, the higher its GDP.

c)

A country's literacy rate and GDP have no effect on one another.

31.

NAFTA allows for what?

a)

Cheaper trade between North American countries

b)

More expensive trade between North American countries

c)

Higher paying jobs in Canada and the United States

d)

Very low wages for workers across North America

32.

What were the expected economic benefits of NAFTA?

a)

NAFTA would lead to a decrease in the standard of living

b)

NAFTA would create the largest geographical free-trade zone

c)

Tariffs, Quotas, and Embargoes would increase due to NAFTA.

d)

A. Countries could specialize in producing goods for which they had abundant resources for.

33.

What is the purpose of the North American Free Trade Agreement (NAFTA)?

a)

Remove tariffs between Canada, Mexico, and the US

b)

Promote travel of citizens between Canada, Mexico, and the US

c)

Create a common currency between Canada, Mexico, and the US

d)

Decrease competition between producers in Canada, Mexico, and the US

34.

Factors that influence economic growth that can help raise the GDP are human capital, capital goods, natural resources, and entrepreneurship.

a)

True

b)

False

35.

This term refers to the limited Supply of something. Ex: Fresh Water in a desert.

a)

Abudance

b)

Scarcity

c)

Quota

d)

None of the above

36.

Because country's currency is worth different amounts than others, countries must rely on

a)

Trade Barriers

b)

NAFTA

c)

Exchange Rates

d)

Embargos

37.

The U.S refuses to trade with Cuba because they are communist. This is an example of which trade barrier?

a)

Tariff

b)

Quota

c)

Embargo

d)

Free Trade

38.

Japanese fisherman limit the amount of fish imported from China, to encourage domestic purchasing of Japanese fish. This is an example of which trade barrier?

a)

Tariff

b)

Embargo

c)

Quota

d)

Free Trade

39.

A tax placed on imported goods.

a)

Tariff

b)

Embargo

c)

Quota

d)

Free Trade Zone

40.

When a country only produces those items that it can make the fastest, best, and most cost effective this is known as

a)

Trade Barriers

b)

Quotas

c)

Specialization

d)

Opportunity

41.

Which of the following is an example of an export for the USA?

a)

America sells paper to Germany

b)

Germany sells printers to America

c)

America sells printers to central Florida

d)

South Africa buys meat from Chile

42.
How does literacy rate affect the standard of living in Latin America?
a)
Literacy rate does not affect the standard of living.
b)
High literacy rates lead to a low standard of living.
c)
A literacy rate helps the people to become bilingual.
d)
An increase in literacy rates can lead to a higher standard of living.
43.
Which of these is the BEST definition of "literacy rate"?
a)
the percentage of people who are able to read and write as compared to those who cannot
b)
the measure of a country's reading level compared to that of other countries
c)
Frenchthe ability to speak one or more languages fluently
d)
the ability to read and write at an appropriate and functional level
44.

What correlation does literacy rate have with standard of living?

a)

the higher the literacy rate the lower the standard of living

b)

the higher the literacy rate the higher the standard of living

c)

the lower the literacy rate the higher the standard of living