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Latin America Economics Unit

Total questions: 36

Worksheet time: 24mins

Name
Class
Date
1.

The___________ a country’s GDP, the better the country’s standard of living.

a)

lower

b)

greater

c)

smaller

d)

answers 1 and 3 are correct

2.

What are the 4 factors that lead to a country’s economic growth?

a)

investment in human capital, investment in physical capital, land (natural resources), entrepreneurship

b)

good international relations, a democratic president, strict laws, freedom of press

c)

a powerful military, strong dictatorial leadership, communist regime, little personal freedom

d)

a monarchy, the World Bank, a parliamentary democracy, personal freedom

3.

What are natural resources?

a)

resources that are gone from nature

b)

resources that are manufactured for the environment

c)

resources that are considered worthless

d)

materials or substances that occur in nature and can be used for economic gain.

4.

What does human capital mean?

a)

the place where the most people live within a country

b)

the place where the most work is performed within a country

c)

the people who perform labor (work)

d)

the building where most people work in a country or state

5.

Why should countries invest in developing human capital?

a)

because the more people you have working in one area like a capital the more productive it will be

b)

it leads to a lower GDP

c)

it leads to lower literacy rate

d)

investment in the education and skills training of people creates a smarter and more productive workforce, which relates to a higher GDP.

6.

What are capital goods?

a)

goods that are produced in the capital

b)

the factories, machinery, and technology used to produce goods and services

c)

goods that are produced without natural resources

d)

goods that are produced by the government

7.

What do entrepreneurs do?

a)

represent business at the capital

b)

make all the laws in regards to business

c)

start their own business, invent something new, or change the way something was previously done so that it works better

d)

work in politics with regards to foreign business

8.
Your friend and you decide to open a snow cone stand. The stand and the snow cone machine are examples of which factor of production?
a)
Natural Resources
b)
Capital Resources/Goods
c)
Entrepreneurship 
d)
Human Capital
9.

Your friend and you decide to open a snow cone stand. The training you give to the people you hire to run the stand are examples of which factor of production?

a)

Capital Resources/Goods

b)

Entrepreneurship

c)

Human Capital

d)

Natural Resources

10.
What is one reason that a country could have a high GDP?
a)
Because they have high wages.
b)
Because they have a highly educated population.
c)
Because they have low taxes.
d)
Because they love going to space.
11.

Which of the following represents an investment in capital resources/goods?

a)

providing free healthcare

b)

modernizing machinery

c)

providing skills training

d)

subsidizing the cost of attending university

12.

Which of the following is MOST likely to be true in a country with a high literacy rate?

a)

a low standard of living

b)

a high standard of living

c)

little investment in human capital

d)

too much investment in capital resources

13.
How does investment in capital goods by companies help a country increase its GDP?
a)
The GDP of a country goes down when companies make more money
b)
Companies that invest in capital goods are able to provide a better place for their workers to work
c)
Highly trained workers help the company be more profitable by finding ways to help the company work better.
d)
When a company invests in capital, it can produce more goods at a better price and increase the profit that it makes.
14.

Which of the following represents the term for "a product of the earth that people use to meet their needs"

a)

capital goods

b)

natural resource

c)

human capital

d)

entrepreneurship

15.

Which of the following BEST represents the role of an entrepreneur?

a)

A person who creates a new business

b)

A leader (CEO) who runs the business

c)

A worker in a factory who gets a raise for working hard

d)

A student who decides to further their education and get their masters degree

16.

In Country A, the government has offered incentives to companies that invest in continuing education and training for their employees. What factor of economic growth is the country working to improve?

a)

capital goods

b)

human capital

c)

natural resources

d)

entrepreneurship

17.

In Country B, the government has offered incentives to companies that invest in improved technology and machinery in their factories. What factor of economic growth is the country working to improve?

a)

capital goods

b)

human capital

c)

natural resources

d)

entrepreneurship

18.

The United Kingdom has large deposits of coal, petroleum, natural gas, iron ore, lead, zinc, and gold. The country will use these items to create products to sell. Which factor of production is being used to increase the GDP?

a)

capital goods

b)

human capital

c)

natural resources

d)

entrepreneurship

19.

People that are willing to take risks and start new businesses or invent new items help to stimulate their countries economies. What factor of production does this represent?

a)

capital goods

b)

human capital

c)

natural resources

d)

entrepreneurship

20.
High levels of GDP per capita indicate...
a)
Higher levels of happiness 
b)
Higher standard of living
c)
Equal levels of wealth 
d)
Self-sufficient communities
21.
Brazil sends university students abroad to study in other countries.
a)
human capital
b)
physical capital
22.

Haiti invests in the expansion of its ports.

a)

human capital

b)

capital goods

23.

Literacy is the ability to

a)

do math

b)

follow directions

c)

read and write

24.

The total dollar amount of all final goods and services produced in a country in a year.

a)

Gross Domestic Product (GDP)

b)

Gross Domestic Product per Capita

c)

Standard of Living

d)

Exports

25.

The total dollar amount of all final goods and services produced in a country in a year divided by the country's population.

a)

Gross Domestic Product (GDP)

b)

Gross Domestic Product per Capita

c)

Standard of Living

d)

Scarcity

26.

A limit to the number of imports that may enter a country

a)

tariff

b)

embargo

c)

demand

d)

quota

27.

A government order stopping trade with another country

a)

tariff

b)

embargo

c)

quota

28.

Which is an example of a quota?

a)

The U.S. stops trade with China.

b)

The U.S. limits the amount of foreign cars brought into our country.

c)

The U.S. pays a high tax on BMW cars brought into the country.

29.
In 1962, the United States prohibited all imports and exports to and from Cuba.
a)
Tariff
b)
Embargo
c)
Quota
30.

Rules used to try to limit trade with other countries

a)

embargo

b)

tariff

c)

trade barriers

d)

quota

31.
Actions in this type of economy relate to ritual, habit, and customs.
a)
Traditional
b)
Command
c)
Market
d)
Mixed
32.
Free enterprise and no government regulation on the economy
a)
Command Economy
b)
Market Economy
c)
Traditional Economy
d)
Mixed Economy
33.
A free-trade zone means:
a)
You don't have to pay money to get items.
b)
There are no tariffs between the countries in this zone.
c)
Trade happens less often.
d)
Trade does not happen.
34.
What are the four types of economies?
a)
command, demand, capitalist, communism
b)
traditional, command, market, mixed
c)
mixed, market, traditional, primary
d)
Natural resources, capital goods, human capital, & entrepreneur 
35.
The combination of a command and a market economy is ___________________. 
a)
mixed economy
b)
command economy
c)
market economy
d)
monopoly
36.

Most Latin American countries are what type of economy?

a)

Mostly traditional with some government involvement

b)

Mostly market with little government involvement

c)

Mostly mixed with some government regulation of industry

d)

Mostly command with little private citizen involvement