Latin America Economic Systems

Select the 3 basic economic questions all systems MUST answer.

• What goods/services will be produced?

• Who will consume the goods/services?

• How much will be sell of each good or service?

• How will goods/services be produced?

Select the three types of economic systems.

• Traditional

• Command

• Democratic

• Market

Traditional economic systems answer 3 basic questions based on traditional customs and beliefs of the past.

• Y

• N

Command economic systems answer 3 basic questions by the government regulating all of the country’s economic decisions: prices of goods, wages of workers, goods to be made, etc.

• Y

• N

Market economic systems answer 3 basic questions by the goods and services produced are determined by what consumers want to buy and what producers want to sell.

• Y

• N

Select all of the following TRUE statements about Mexico's economic systems. (TWO or more statements are TRUE)

• Mixed economic system that is about 65% free and 35% command.

• Mexico has one of the highest levels of economic freedom in Latin America

• Citizens are generally free to make most economic decisions themselves

• Mexico's government makes all of the decisions about what good are made and sold in the country.

Economic systems that have elements of both command and market economic systems are called mixed economies.

• Y

• N

Oil is a leading source of income for the Mexican economy.

• Y

• N

Select all of the TRUE statements about Brazil's economy. (More than 2 apply)

• Mixed economic system that is about 53% free and 47% command.

• The country largest economy in Latin America.

• The government started privatizing some of its main industries in the 1990s, but it still has a high level of government involvement.

• The government makes all of the economic decisions for it's citizens.

Select all of the TRUE statements about Cuba's economic system. (More than two apply).

• Few Cubans own their own businesses because the government has such strict control.

• Cuba is a command economy with only a few market elements.

• Private businesses and citizens have no real role in the economy.

• The government regulates its economy without much input from private citizens and owns almost all property, factories, and resources.

• Cuba has a thriving and robust economy due to a command economy.