Unit 6 Test-Latin American Economics & Environment

"Shared by the community, based on customs, produced by hunting" In which kind of economy is the product above sold?

• Mixed

• Market

• Command

• Traditional

Which of the following statements is the BEST example of a command economy?

• Anyone can easily start a company to sell goods

• Anyone can make a profit from hard work

• The government controls the economy

• Traditional foods are gathered for sale

The BEST definition of "market economy" is

• an economy where free markets determine what gets manufactured and sold

• an economy where the government creates plans for what will be produced

• an economy where people barter for whatever is available

• an economy where both the government and producers decide to sell

When thinking about the economic continuum, which of the following countries is closest to having a pure command system?

• Mexico

• Cuba

• Brazil

• U. S. A.

When thinking about the economic continuum, which of the following is closest to having a pure market system?

• Mexico

• Cuba

• Brazil

Since no country is purely market or command, countries have which of the following type of economic system?

• Traditional

• Command

• Market

• Mixed

Bolivia is a landlocked country. This is an example of:

• a command economy

• a trade barrier

• a tariff

• human capital

How does specialization encourage trade between two countries?

• Specialization produces such an abundance of one product that the country is forced to trade it.

• Specialization creates a diversity of products in one country and very few products in others.

• Specialization utilizes different natural resources that are shared between multiple countries.

• Specialization allows for countries to master one product and sell it to other countries that may need it.

What is the purpose of a tariff, such as a protective tariff?

• to increase the prices of imported goods and protect a country's own industries from foreign competition.

• to decrease the prices of imported goods so a country's people can buy what they need for the lowest cost

• to increase the prices of exported goods so a country's own businesses are less likely to send their products to other nations

• to decrease the prices of exported goods so people in other countries will buy the foreign nation's product over one from home

Which trade barrier discourages trade by placing a tax on foreign goods?

• embargo

• quota

• subsidy

• tariff