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WorksheetsLatin America Economics Test
Total questions: 65
Worksheet time: 2hrs 28mins
What type of economy is Cuba closest to?
Command
Market
Traditional
What type of economy is Mexico and Brazil closer to?
Command
Market
Traditional
Government rulers tell members of society how the fundamental questions will be answered.
Command Economy
Market Economy
Traditional Economy
Mixed Economy
People simply follow tradition and do whatever their ancestors did (example- If grandfather and dad were fisherman, then son will be a fisherman).
Command Economy
Market Economy
Traditional Economy
Mixed Economy
The workers who produce the goods and service (example-Miners, doctors and teachers)
Human Capital
Capital Goods
Natural Resources
Entrepreneurs
Resources created by people to help produce other things such as tools, machinery, and equipment. Money is one!
Human Capital
Capital Goods
Natural Resources
Entrepreneurs
Materials found in nature such as trees, oil, minerals and water.
Human Capital
Capital Goods
Natural Resources
Entrepreneurs
Strong nations invest money in healthcare, education, and training citizens to do different kinds of jobs. What are these strong nations investing in?
capital goods
gross domestic product
human capital
physical capital
Brazil is building new factories and using newer technology. What are these examples of?
Opportunity costs
Gross domestic product
Investment in human capital
Investment in capital goods
A farmer in Mexico may rely on bartering goods with other farmers. What type of economic system would he/she be using?
democracy
market
command
traditional
Why do countries need to exchange currency in order to trade with other countries?
So countries can limit their trade with other countries
Because people want to use American dollars to trade
Because banks do not like to exchange their money for other currencies
To buy and sell goods and services with other countries
An entrepreneur is a person who starts a business. Which is a way that entrepreneurs help increase a country’s GDP?
Working to decrease the amount of goods sold in a country
Closing businesses that are making too much money
Creating businesses that give people jobs
Writing laws to protect personal property
If Mexico wants to increase its GDP, what should it do to invest more in physical capital?
Stop giving money to educational programs
Improve its inefficient factories and outdated technology
Stop free trade with other nearby countries
Become an autocratic country
The country of Brazil invests more in human capital than Honduras. What is most likely true about Gross Domestic Product (GDP) in these two countries?
Honduras’s GDP is higher per capita than Brazil’s.
Honduras’s GDP is lower per capita than Brazil’s.
Honduras and Brazil have almost the same GDP per capita.
Not enough information is given to determine this.
Which explanation best reflects a country with a mixed economy?
The government determines what will be produced.
The government is not involved at all in the economy.
Businesses are run solely by individual citizens.
Businesses are controlled by both the government and citizens.
Juan, an auto mechanic, has decided his small town needs its own car repair shop. Jose bought the building and opened his shop. What is Jose an example of?
trade surplus
entrepreneur
gross domestic product
opportunity costs
Which statement below best describes the economy of Cuba?
The government controls what factories produce
Jobs are handed down from generation to generation
Businesses and farms are owned by individuals
The government is not involved in the economy at all
NAFTA removed what trade barrier?
Quota
Embargo
Tarrifs
Trade
What does NAFTA stand for?
North Atlantic Free Trade Agreement
North American Free Trade Agreement
North Alaska Free Trade Agreement
North Amazon Free Trade Agreement
What reason would a American factory worker might not like NAFTA?
American businesses might move to Mexico for cheaper labor costs, jobs lost in USA
NAFTA products are cheaper for American consumers
NAFTA removes tarriffs
What countries are a part of NAFTA?
North America, South America, Australia
Brazil, Mexico, Cuba
Canada, USA, Mexico
Brazil, Mexico, USA
Human Capital is an investment in
oil
computers
training workers
buildings
A country that allows it's building and factories to fall apart means they don't not invest in
Human Capital
Natural Resources
Entrepreneurs
Capital Goods
In a ___________ economy, All economic decisions are made by the Government.
traditional
command
market
mixed
In a ___________ economy, all economic decisions are based on customs, traditions, & beliefs of the past.
traditional
command
market
mixed
In a ___________ economy, economic decisions are made based on the changes in prices that occur as buyers & sellers interact in the market place.
traditional
command
market
mixed
Education, training, skills, and healthcare of the workers in a business or country are all investments in _________.
natural resources
human capital
capital goods
entrpreneurship
Brazil has a ______________ economic system.
traditional
market
mixed
command
Adriana lives in Brazil.She is planning a trip to visit her sister,who recently moved to Mexico.She plans to take a taxi from the airport when she arrives sin Mexico.What must she do in order to pay for the taxi ?
Get a job so that she can earn Mexican pesos
Exchange her Brazilian reais for Mexican pesos
Pay a travel tariff to the government of Mexico
Pay a travel subsidy to the government of Mexico
Which of the following is NOT usually an effect of increased literacy?
People are able to get better jobs
A nation’s government weakens
A nation’s industry improves
People are able to improve their lives
What is a Sanction?
Tariff on imports
Ending all trade with a country
Economically punishing another country
Allowing only a small amount of a product into the country
Strong nations invest money in healthcare, education, and training citizens to do different kinds of jobs. What are these strong nations investing in?
capital goods
gross domestic product
human capital
physical capital
Quota
a limit of numbers
A limit of imports
a limit of exports
a limit of words
Building a new factory
Capital Good
Human capital
Natural Resource
entrepreneur
Which country is more economically free?
Cuba
Mexico
A country that is part market and part command is known as a
Command Economy
Mixed Economy
Traditional Economy
None of the above
Oil, Trees, Water
Human Capital
Capital Good
Entrepreneur
Natural Resource
Bill Gates, Steve Jobs, Jay-z
Natural Resource
Human Capital
Capital Goods
Entrepreneur
Investing in human capital and capital goods will lower a country's GDP
True
False
In which economic system do the customs of the past determine what is produced?
traditional
command
market
Why is it important for countries to have a system for exchanging currencies from different countries?
Makes the dollar more valuable
Allows banks to deal in different currencies
Makes products costs less
Makes it possible to buy and sell goods in different countries
What problems can arise if a country doesn't invest in human capital?
No money to pay workers
Workers learn the skills their need on their own
Businesses will not pay taxes to get good schools
Uneducated, unskilled, and unhealthy workers are less productive
What is an entrepreneur?
Someone who provides the money to open and operate a business
Someone who loans money to someone else to open and operate a business
Someone who hires workers for a business.
What is GDP?
a portion of the goods/services produced in a country for a year
total number of imports/exports in a country for a year
total value of goods/services produced in a country for a year
What's the correlation between a country's literacy rate and their GDP?
The higher a country's literacy rate, the lower its GDP.
The higher a country's literacy rate, the higher its GDP.
A country's literacy rate and GDP have no effect on one another.
NAFTA allows for what?
Cheaper trade between North American countries
More expensive trade between North American countries
Higher paying jobs in Canada and the United States
Very low wages for workers across North America
What were the expected economic benefits of NAFTA?
NAFTA would lead to a decrease in the standard of living
NAFTA would create the largest geographical free-trade zone
Tariffs, Quotas, and Embargoes would increase due to NAFTA.
A. Countries could specialize in producing goods for which they had abundant resources for.
What is the purpose of the North American Free Trade Agreement (NAFTA)?
Remove tariffs between Canada, Mexico, and the US
Promote travel of citizens between Canada, Mexico, and the US
Create a common currency between Canada, Mexico, and the US
Decrease competition between producers in Canada, Mexico, and the US
Because country's currency is worth different amounts than others, countries must rely on
Trade Barriers
NAFTA
Exchange Rates
Embargos
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?
Tariff
Embargo
Quota
Free Trade
Which of the following is an example of an export for the USA?
America sells paper to Germany
Germany sells printers to America
America sells printers to central Florida
South Africa buys meat from Chile
What correlation does literacy rate have with standard of living?
the higher the literacy rate the lower the standard of living
the higher the literacy rate the higher the standard of living
the lower the literacy rate the higher the standard of living
Which country has oil reserves and Gas reserves?
Canada
Mexico
Couch potato
Russia
What is the Trade Barrier that Citizens Normally Exercise This?
Tariff
boycott
Quotas
Embargo
What is trading without money?
Services
Goods
parlimentray
bartering
