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Economics of Latin America

Total questions: 65

Worksheet time: 55mins

Name
Class
Date
1.

Why does Cuba have to import many products?

a)

It's economy leans more toward a command system.

b)

It is an island country.

c)

It is an island country with fewer natural resources than many other countries.

d)

It is an island country that has an abundance of natural resources.

2.

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

a)

What are your economic resources?

b)

How will the goods be produced?

c)

What is the cost to produce goods?

d)

Should this risk be taken?

3.

Which is a logical conclusion for a country with a high GDP?

a)

It has a high literacy rate.

b)

It has a low literacy rate.

c)

Literacy is not a priority in the country.

d)

There is no relationship between a country's literacy rate and GDP.

4.

What factor of economic growth would increase a country's literacy rate and therefore it's GDP?

a)

investment in capital goods

b)

investment in the stock market

c)

investment in real estate

d)

investment in human capital

5.

Which choice is an investment in capital goods?

a)

Building a fancy office building

b)

Updating the companies logo

c)

Updating the companies technology

d)

Putting in vending machines for employees to use

6.

What countries are part of NAFTA?

a)

United States, Mexico, Congo

b)

United Kingdom, Mexico, Canada

c)

United States, Morocco, Canada

d)

United States, Mexico, Canada

7.

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

a)

Brazil

b)

Mexico

c)

Venezuela

d)

Cuba

8.

What 3 factors are true if literacy rate is increased?

a)

People are able to improve their lives.

b)

A nation's industry improves.

c)

The government will stop supporting education.

d)

People will be able to get better jobs.

9.

Why is Mexico's economy considered a mixed-market economy?

a)

There are more private than public businesses.

b)

There are more public than private businesses.

c)

There are no public businesses.

d)

There are no private businesses.

10.

What economic factors would you have to consider to trade with another country?

a)

There type of currency

b)

The exchange rate

c)

The trade barriers that may be in place

d)

The population and GDP of that country

11.

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

a)

So they can make all money the same.

b)

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

c)

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

d)

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

12.

What guides the 3 economic questions in a command economy?

a)

supply and demand

b)

the government

c)

decisions passed down by ancestors

d)

Nothing. It just works itself out.

13.

What guides the 3 economic questions in a market economy?

a)

supply and demand

b)

the government

c)

decisions passed down by ancestors

d)

Nothing. It just works itself out.

14.

What guides the 3 economic questions in a mixed economy?

a)

supply and demand with some government regulations

b)

the government with some private regulations

c)

decisions passed down by ancestors

d)

Nothing. It just works itself out.

15.
  A tax on imported goods is a 
a)
tariff
b)
quota
c)
capital
d)
import 
16.
A quota is a
a)
restricted trade with another country
b)
tax put on imported goods
c)
Limited number 
d)
profit made by a country over one year
17.
Something that restricts trade with another country is called a(n)
a)
quota
b)
embargo
c)
import
d)
trade barrier 
18.
An entrepreneur is  
a)
someone who takes the risk to start a new business
b)
one that has education and industry
c)
one that is working on education and industry
d)
value placed on one's education and skill 
19.
The value placed on one's education and skill is called 
a)
Developing country
b)
Capital (goods)
c)
Human capital 
d)
Developed country 
20.
The profit a country makes over a given time period, usually a year is called 
a)
Gross Domestic Product (GDP)
b)
Economic System 
c)
Export
d)
Import 
21.
A resource that come from the earth are called
a)
human capital 
b)
renewable resources 
c)
nonrenewable resources
d)
natural resources 
22.
A system that determines what, how, and for whom something is produced is called a(n)
a)
developing country 
b)
renewable resource
c)
economic system 
d)
trade barrier 
23.
Anything that stops trade is called
a)
embargo
b)
quota 
c)
trade barrier
d)
export 
24.

SS6G2a Which of the following best explains how specialization encourages trade between nations?

a)

Specialization encourages businesses to make a wide variety of items, that way it ensures that someone will want to trade with them.

b)

Countries that are allies will always want to trade with each other.

c)

Specialization allows nations to protect domestic markets from foreign competition and block the importation of dangerous products.

d)

Specialization allows nations to choose to market only those products/services which they are capable of providing fastest, cheapest, and in great abundance.

25.

SS6E1d Global agreements like NAFTA exist to make trade more affordable between member nations. They achieve this by eliminating ___________ on imported goods.

a)

quota

b)

tariffs

c)

embargo

d)

borders

26.

SS6E1a Which statement BEST compares a market economy to a command economy?

a)

In both market and command, the government controls the economic activity in a country.

b)

In both market and command, the government controls the economic activity in a country.

c)

In a market economy individuals decide for themselves what they will buy and sell, while the government decides in command economy.

d)

In a market economy there is no private ownership, while command promotes it.

27.

SS6E1b Which action would do the MOST to make Cuba’s economic system more like Brazil’s?

a)

increasing incentives to trade

b)

decreasing personal income tax rates

c)

decreasing government involvement in major industries

d)

increasing per capita income by not allowing a free market

28.

SS6E3a Based on the map of world literacy in 2011, what can you conclude about Latin America's literacy rate?

a)

Latin America is the region with the lowest literacy levels in the world.

b)

Latin America has high levels of literacy, except in a few countries in

Central America.

c)

South America shows the lowest level of literacy of all continents showed on the map.

d)

Latin America shows much higher literacy rates than all North America.

29.

SS6E3c If the leader of a country's plan is to improve the economy by encouraging companies to invest in new computers and wireless communication systems, s/he would be basing his/her plan on the conclusion that:

a)

An investment in human capital will increase the country's GDP.

b)

An investment in entrepreneurs will spark creativity in the country.

c)

An investment in capital goods will increase the country's GDP.

d)

An investment in human resources will help the country's economy.

30.

SS6E2d Besides the economic agreements, stated in the Preamble of NAFTA, the United States, Canada, and Mexico also agreed to do the following for workers:

a)

provide more job opportunities, improve working conditions, provide a better standard of living, and protect the rights of workers

b)

The governments would provide training to teach them to read and write, in order to increase the GDP of their country.

c)

provide education and healthcare for all citizens

d)

provide adequate shelter, food, and clean drinking water.

31.

SS6E3e Would one conclude that it is difficult to be an entrepreneur in Cuba?

a)

Yes, because of strict government control, private property strictly regulated, and limited trade and investment.

b)

No, foreign investment in the country is at an all-time high, government loans are at low interest rates, and approval for bank loans have improved.

c)

Yes, because there is so much private business competition.

d)

No, because Cuba does not need many entrepreneurs because they make enough money from public sector businesses to maintain the country's high GDP.

32.

SS6E4b According to the picture, which country is the most market leaning?

a)

Cuba

b)

Brazil

c)

Mexico

d)

none of the above

33.

SS6E2b The change in Cuba’s government following the Communist Revolution led to the U.S. placing an embargo on trade with Cuba. An embargo is best described as: (PS)

a)

A limit on trade

b)

A ban on trade for political reasons

c)

A tax on imported goods

d)

A ban on trade for religious reasons

34.

SS6E4b Most countries have a mixed economy located on a continuum between pure market and command. What does this statement mean?

a)

Most countries have stores that continue to sell goods only to the government.

b)

Most countries have a blend of market and command economies. Some are closer to command while others are closer to pure market.

c)

Most countries really have traditional economies where they do things the way that they always have.

d)

Most countries have a pure market or pure command economy.

35.

What type of economy is Cuba closest to?

a)

Command

b)

Market

c)

Traditional

36.

Government rulers tell members of society how the fundamental questions will be answered.

a)

Command Economy

b)

Market Economy

c)

Traditional Economy

d)

Mixed Economy

37.

People simply follow tradition and do whatever their ancestors did (example- If grandfather and dad were fisherman, then son will be a fisherman).

a)

Command Economy

b)

Market Economy

c)

Traditional Economy

d)

Mixed Economy

38.

The workers who produce the goods and service (example-Miners, doctors and teachers)

a)

Human Capital

b)

Capital Goods

c)

Natural Resources

d)

Entrepreneurs

39.

Resources created by people to help produce other things such as tools, machinery, and equipment. Money is one!

a)

Human Capital

b)

Capital Goods

c)

Natural Resources

d)

Entrepreneurs

40.

Materials found in nature such as trees, oil, minerals and water.

a)

Human Capital

b)

Capital Goods

c)

Natural Resources

d)

Entrepreneurs

41.

Strong nations invest money in healthcare, education, and training citizens to do different kinds of jobs. What are these strong nations investing in?

a)

capital goods

b)

gross domestic product

c)

human capital

d)

physical capital

42.

Brazil is building new factories and using newer technology. What are these examples of?

a)

Opportunity costs

b)

Gross domestic product

c)

Investment in human capital

d)

Investment in capital goods

43.

Why do countries need to exchange currency in order to trade with other countries?

a)

So countries can limit their trade with other countries

b)

Because people want to use American dollars to trade

c)

Because banks do not like to exchange their money for other currencies

d)

To buy and sell goods and services with other countries

44.

An entrepreneur is a person who starts a business. Which is a way that entrepreneurs help increase a country’s GDP?

a)

Working to decrease the amount of goods sold in a country

b)

Closing businesses that are making too much money

c)

Creating businesses that give people jobs

d)

Writing laws to protect personal property

45.

Human Capital is an investment in

a)

oil

b)

computers

c)

training workers

d)

buildings

46.

A country that allows it's building and factories to fall apart means they don't not invest in

a)

Human Capital

b)

Natural Resources

c)

Entrepreneurs

d)

Capital Goods

47.
The value placed on one's education and skill is called 
a)
Developing country
b)
Capital (goods)
c)
Human capital 
d)
Developed country 
48.

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 ?

a)

Get a job so that she can earn Mexican pesos

b)

Exchange her Brazilian reais for Mexican pesos

c)

Pay a travel tariff to the government of Mexico

d)

Pay a travel subsidy to the government of Mexico

49.

Strong nations invest money in healthcare, education, and training citizens to do different kinds of jobs. What are these strong nations investing in?

a)

capital goods

b)

gross domestic product

c)

human capital

d)

physical capital

50.

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

51.

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

52.

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.

53.
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.
54.
In this type of economy, the government places control on businesses, but the individual decides what to make. 
a)
Mixed
b)
Market
c)
Command 
d)
Traditional
55.

There are four types of economic systems. Most economies are _____.

a)

Traditional

b)

Command

c)

Market

d)

Mixed

56.
What is an economic system where only the government makes the economic decisions? 
a)
traditional economy
b)
free enterprise 
c)
mixed economy
d)
command economy
57.
What are the 3 economic questions?
a)
What to produce? How To Produce? For whom to produce?
b)
Who to produce? Why you produce? Like to produce?
c)
Why to produce? Tell who to produce? Things to produce?
58.
If a country produces one product at a fast pace and can do what they do best and trade for the rest, this is called what?
a)
Specialization
b)
Currency Exchange
c)
Tariff
59.
What is an entrepreneur?
a)
A worker in a company
b)
The person who takes a risk to start a business
c)
an inventor
d)
The person in commercials for a product
60.

Why does Cuba have to import many products?

a)

It's economy leans more toward a command system.

b)

It is an island country.

c)

It is an island country with fewer natural resources than many other countries.

d)

It is an island country that has an abundance of natural resources.

61.

Which is a logical conclusion for a country with a high GDP?

a)

It has a high literacy rate.

b)

It has a low literacy rate.

c)

Literacy is not a priority in the country.

d)

There is no relationship between a country's literacy rate and GDP.

62.
Cuba has a ______ economic system.
a)
Traditional
b)
Mixed
c)
Command
d)
M
63.
When you travel to another country, what should you do before you make a purchase?
a)
Rent a car
b)
Get a hotel 
c)
Exchange currency
d)
Practice your standard of living
64.
How can a nation invest in human capital?
a)
Cut down trees
b)
Open a business ran by the government
c)
Train workers
d)
Buy a bunch of hammers and nails 
65.
A computer is an example of a________.
a)
Natural Resource
b)
Human Capital
c)
Entrepreneur 
d)
Capital Good