Unit 10 Canada and L.A. Economics Study Guide
1.)What best describes a mixed economy?
one that has elements of both command and market economies
2.) John made a decision to get a job and he makes $900 a month. What personal money management
choice is this an example of?
John increasing his income
3.) In what way are tariffs, quotas, and embargoes all the same?
They are all ways to limit trade between countries.
4.) The following nations participate in the North American Free Trade Agreement (NAFTA)…
U.S. CANADA AND MEXICO
5.) In which economic system are the production and distribution of goods owned by the government?
command
6.) What economic strategy was used by the United States when it refused to do any trade with Cuba?
Embargo
7.) How does NAFTA (the North American Free Trade Agreement) benefit the economies of countries
that belong to it?
By removing barriers to trade between these countries
8.) Define what makes a country have a market economy?
Companies produce goods of their choice and consumers decide whether to buy the goods.
9.) Give an example of how goods and services are gotten in a traditional economic system?
bartering with a trader
10.) James borrowed $10,000 from the bank. By the time the loan is repaid, James has paid the bank
$10,800. Why does James have to spend more money than the original amount he borrowed?
It costs money to borrow money, so interest has to be paid in addition to the amount that was
borrowed.
11.) How is Brazil’s government involved in its economy?
People in Brazil start and run businesses with limited government involvement
12.) How does investment in human capital by companies help a country increase its GDP?
Highly trained workers are more efficient which helps the company become more profitable.
13.) Canada produces lumber and paper efficiently. How does this specialization affect international
trade?
Other countries want to trade with Canada because everyone needs these products.
14.) Brazil is building new factories and using newer technology. What is the likely economic result
of these decisions?
Brazil’s investment in capital goods will increase their GDP