Latin America (Econ)

What factor is used to classify economies as market, command, or mixed?

• the number of consumers in the economy

• the number of producers in the economy

• the abundance of natural resources in the economy

• the amount of government involvement in the economy

Some small communities in the remote parts of the Amazon Rainforest hunt and farm in the same ways their ancestors did hundreds of years ago. They barter among themselves or with other small communities for the things they cannot make themselves. What type of economy is this?

• mixed economy

• traditional economy

• command economy

• market economy

Which statement about the modern Cuban economy is correct?

• The Cuban economy is a pure market economy.

• The Cuban economy is a pure command economy.

• The Cuban economy is a traditional economy with some market elements

• The Cuban economy is a command economy with some market elements.

command ___________________________ market

x y z

The economies of Mexico, Cuba, and Brazil are labeled on the diagram. Which answer choice matches the countries to their correct labels?

• X is Cuba, Y is Brazil, and Z is Mexico.

• X is Cuba, Y is Mexico, and Z is Brazil.

• X is Brazil, Y is Cuba, and Z is Mexico.

• X is Brazil, Y is Mexico, and Z is Cuba

The North American Free Trade Agreement (NAFTA) between the United States, Mexico, and Canada was designed to

• raise environmental standards.

• increase trade and eliminate tariffs.

• allow people to move freely between the countries

• create a military partnership between the countries.

Which statement about trade barriers is correct?

• Quotas and embargoes are imposed to encourage international trade.

• Tariffs are imposed to encourage consumers to purchase domestic goods.

• Quotas are imposed to encourage producers to improve the quality of goods.

• Tariffs and embargoes are imposed to encourage consumers to purchase more goods.

What were the TWO primary goals of the North American Free Trade Agreement (NAFTA)?

• reducing barriers to immigration between Canada, Mexico, and the United States

• eliminating barriers to trade between Canada, Mexico, and the United States

• reducing industrial pollution within Canada, Mexico, and the United States

• encouraging economic growth in Canada, Mexico, and the United States

Why do countries impose barriers to trade such as quotas?

• to protect domestic industries from foreign competition

• to improve trade relationships with other countries

• to increase the efficiency of domestic producers

• to lower the costs of goods for consumers

Why do countries trade with each other?

• Most countries trade with other countries in order to make alliances.

• Most countries trade for foreign currency to promote economic growth.

• Most countries produce a surplus of goods that would be wasted otherwise.

• Most countries cannot efficiently produce everything their populations need.

Why do countries need to have a system for exchanging currency with other nations?

• to have a uniform value of currency so they can identify what the value of goods are

• to know which countries' currency has the greatest value so they can buy goods at the lowest cost

• to know the value of their money compared to the value of other countries' money so they can trade goods

• to have an international bank that converts the money of each country so countries can buy and sell goods