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WorksheetsLatin America Economics (Test Study Guide)
Total questions: 20
Worksheet time: 10mins
How does the command economy of Cuba answer the three basic economic questions (what to produce, how to produce and for whom to produce)?
The past guides all decisions about how to answer the basic economic questions.
The government makes all the decisions about answering the basic economic questions.
Supply and demand will determine how all the basic economic questions are answered.
Supply and demand will answer the basic economic questions, but government will make changes to guarantee fairness and productivity.
Which is an advantage of a market economy?
ability to control the cost of labor
ability to adjust to changes over time
ability to set high prices for all consumer goods
ability to limit consumer choices to practical goods
Use the continuum to answer the following question. Which country in the diagram has the LEAST free economy?
Cuba
Mexico
Canada
United States
Use the information and the continuum to answer the following question. Where would the country being described be placed on the continuum?
1. The government owns the oil industry.
2. Most businesses are owned by private citizens.
3. Entrepreneurs such as small farm owners have struggled due to a free trade zone with neighboring countries.
Point A
Point B
Point C
Point D
In what way are the Mexican and Brazilian economies similar?
They are both mixed economies.
They are both mixed economies.
They are both pure market economies.
They are both pure command economies.
Use the information to answer the following question.
Brazil has made economic changes such as turning some government-run industries over to private businesses and lessening regulations (laws) on others.
What effect would this have on Brazil’s location on the economic continuum?
Brazil would be more mixed.
Brazil would keep in the same location.
Brazil would move closer to a pure market.
Brazil would move closer to a pure command.
Which countries are closer to a pure market?
Cuba and Brazil
Cuba and Mexico
Brazil and Mexico
Brazil, Cuba, and Mexico
Use the information to answer the following question.
Country A is a South American country which is often covered by snow and has a short growing season. They have a difficult time supplying their citizens with enough food. They do have an abundant (large) supply of fresh water from snow melt and many freshwater lakes.
What is a solution for Country A’s food scarcity?
use their fresh water to help grow their crops
increase their growing season by clearing land
use trade barriers to protect their workers and goods
specialize in fresh water trade to get the food needed
Use the information to answer the following question.
Adrian lives in Brazil. He is planning a trip to visit his sister, who recently moved to Mexico. He plans to take a taxi from the airport when he arrives in Mexico.
What must Adrian do in order to pay cash for the taxi ride?
get a job so that he can earn Mexican pesos
pay a travel tariff to the government of Mexico
exchange his Brazilian reals for Mexican pesos
pay a travel subsidy to the government of Mexico
Which of the following statements BEST describes the relationship between currency and international trade?
The value of a country’s currency, and how that value affects international trade, never changes.
International trade often requires that buyers and sellers agree on a currency in which to conduct business.
The dollar has the highest value of all currencies in the world, allowing the United States to dictate terms in most trade agreements.
International trade requires the buyers to purchase the foreign currency, while allowing the seller to work only with their own currency.
After the Cuban Missile Crisis, the United States blocked all trade with Cuba. What type of trade barrier did the United States place on Cuba?
embargo
quota
specialization
tariff
The North American Free Trade Agreement (NAFTA) had which of the following effects on United States-Mexican relations?
The agreement led to important immigration reforms in the United States.
The United States sponsored Mexico to join the World Trade Organization.
The United States was able to issue a series of tariffs on Mexican-made products.
The agreement helped Mexico increase its oil exports to benefit the United States economy.
Due to Mexico’s involvement in the North American Free Trade Agreement (NAFTA), which of the following was a consequence?
increased taxes
increased tariffs
increased inflation
increased pollution
What would be the BEST way for the Brazilian government to improve the standard of living in the country?
The government should increase investment in public education.
The government should nationalize the country’s major industries.
The government should create barriers to trade with other countries.
The government should spend less on investments in human capital.
Which of the following is MOST negatively affected by a low national literacy rate?
access to resources
territorial expansion
economic development
trade with other nations
How do high literacy rates in a country help that country’s economic development?
They raise the amount of trade with other countries.
They raise the natural resources the country controls.
They raise the population’s ability to perform skilled labor.
They raise the government’s ability to control information.
When a country increases its investment in human capital, what is the impact on the country’s Gross Domestic Product (GDP)?
The GDP will usually increase.
The GDP will usually decrease.
The GDP will usually not change.
The GDP will change for a short time only.
Use the information to answer the following question.
Mexico and Brazil have both made capital goods investments in their petroleum extraction and refining technologies. Cuba, meanwhile, has made only minimal investment in its sugar processing facilities.
Based on the information, what conclusion can be made about the Gross Domestic Product (GDP) of these three countries?
All three countries should have equally strong GDP.
Cuba should have a higher GDP than Mexico and Brazil.
Mexico and Brazil should have a higher GDP than Cuba.
Mexico and Brazil have not been able to raise their GDP in comparison to Cuba.
Use the information to answer the following question.
Cattle ranching is important for Brazil’s economy. However, large herds of cattle need lots of space to graze.
If cattle ranching expanded in Brazil, which of the following industries would this MOST negatively impact?
agriculture
lumber
manufacturing
mining
How does entrepreneurship contribute to economic development the MOST?
Entrepreneurship helps improve access to resources.
Entrepreneurship contributes to public sector growth.
Entrepreneurship contributes to private sector growth.
Entrepreneurship helps improve national literacy rates.
