Government
Who elects the president in a presidential democracy?
The citizens who directly vote.
In which Latin American country does the government make all the economic decisions?
Cuba
What are the three trade barriers?
Embargo - total ban
Quote - limit
Tariff - taxes
What might happen if there were no system for currency exchange?
International trade would not be possible.
What is the type of economic system used in Cuba?
Command (Remember - Cuba and Command)
Which country in Latin America has a dictatorship?
Cuba
Which Latin American country has a market-leaning economic system?
Mexico (Remember - Mexico and Market)
How do embargoes impact Latin American countries differently than tariffs?
An embargo can influence a country to make political changes to stop the bans. Tariffs encourage domestic trade so customers do not have to pay additional tax.
What is the difference between human capital and capital goods?
Capital goods are the factories, machines, technology, tools, equipment, and any other human-made goods used to make other goods and services.
Human capital is the talents, skills, and labor of people that can be used to produce goods and services.
What is true about the abundance of natural resources in Brazil?
The diversity in natural resources leads to more trade.
What do the governments of Brazil and Mexico have in common?
Both countries have presidents and bi-cameral (two house) legislatures.
Which economy is a mix of privately-owned businesses and state-run services?
A mixed economy
How are quotas and tariffs in Latin America similar?
They both limit the amount of goods imported from another nation so that more goods are produced domestically. They are trade barriers.
What is one thing governments can do to to increase economic growth as well as the literacy rate?
Invest in human capital in order to increase the gross domestic product (GDP).
Why is there a need for a system to exchange currencies between nations?
A currency exchange system ensures the equitable exchange of goods and services between countries. You will exchange your currency when you travel between countries.
What are two ways the economic systems of Mexico and Cuba are different?
1. Mexico is a market-leaning economy; Cuba is a command-leaning economy.
2. Mexico's government claims ownership of the oil and gas reserves; Cuba's government claims ownership over most everything.
When tariffs are placed on goods, what is that encouraging consumers to do?
Purchase their products domestically, or made in the country they live in.
What are two true facts about the natural resources impact on economic growth in Brazil?
1. An increase in fuel prices and fuel shortages have made it difficult to operate farming machinery.
2. Efforts to revive the mining industry have the potential to combat the negative impact of failing industries.
What is true about Cuba's literacy rate and standard of living?
Even though Cuba has the highest literacy rate, they have the lowest standard of living because its communist government mismanages the economy.
What is an entrepreneur and what is something important they must consider?
An entrepreneur is someone who opens their own business. They need to see if their investment in their business will lead to a profit. Starting a business is always risky since you invest money up front.