Study guide By: Osvaldo desantos

Unitary means forming a single or uniform entity. 1. Define unitary Unitary means forming a single or uniform entity.

2. Define confederation an organization that consists of a number of parties or groups united in an alliance or league.

3. Define federal having or relating to a system of government in which several states form a unity but remain independent in internal affairs.

4. Define autocracy a system of government by one person with absolute power.

5. Define oligarchy a small group of people having control of a country, organization, or institution.

6. Define democracy a system of government by the whole population or all the eligible members of a state, typically through elected representatives.

7.Describe the difference between parliamentary and presidential democracies. The major difference between these two systems is that in a Presidential system, the executive leader, the President, is directly voted upon by the people. Parliamentary is when people relating to, enacted by, or suitable for a parliament.

8.What are the types of government and economic systems of the Brazil, Cuba, and Mexico? The government is federal and the economic systems is mixed economic systems.

The three basic questions that are commonly asked are: 9. What are the three basic questions that all economic systems have to answer? The three basic questions that are commonly asked are: What to produce? How to produce? For whom to produce?

10.What is a traditional economy? Traditional economy is an original economic system in which traditions, customs, and beliefs help shape the goods and the services the economy produces, as well as the rules and manner of their distribution. Countries that use this type of economic system are often rural and farm-based.

11.What is a pure market economy? Free market is a system in which the prices for goods and services are determined by the open market and consumers, in which the laws and forces of supply and demand are free from any intervention by a government, price-setting monopoly, or other authority.

12.What is a pure command economy? Command economy is a system where the government, rather than the free market, determines what goods should be produced, how much should be produced and the price at which the goods are offered for sale.

Traditional Common Market Mixed 13.What is a type of economic system do most Latin American countries have ? Traditional Common Market Mixed

Government - Presidential democracy and dictatorship. 14. Where are Brazil, Cuba, and Mexico located on the economic continuum? Government - Presidential democracy and dictatorship. Economic Systems - Traditional, command, and market.

15. Define GDP? Gross Domestic Product.

16. Define human capital? Human capital is a term popularized by Gary Becker, an economist from the University of Chicago, and Jacob Mincer that refers to the stock of knowledge, habits, social and personality attributes, including creativity, embodied in the ability to perform labor so as to produce economic value.

17. Name two things that influence human capital. A country’s literacy impact human capital. The percent of the population over 15 that can read/write. Human capital includes education,training,skills,and healthcare of the workers and the value that they bring to the country’s economy. Examples- computers/reading/writing/math skills, talent in music/sports/acting, ability to follow directions, ability to serve as a group leader and cooperate with group members.

18. Define capital goods. Capital goods mean that are used in producing other goods, rather than being bought by consumers.

19. Define Entrepreneur. Entrepreneur means a person who organizes and operates a business or businesses, taking on greater than normal financial risks in order to do so.

20. Explain the connection between natural resources and a country’s wealth. Natural resources are when you have stuff that are important for example you need money, food and etc.

21. Explain how specialization encourages trade between countries. If a country produces the goods they can make most efficiently, that country can trade them for goods made from other that cannot be produced locally.

22. Define tariff Tariffs are used to restrict trade, as they increase the price of imported goods and services, making them more expensive to consumers.

23. Define embargo. an order of a government prohibiting the movement of merchant ships into or out of its ports.

24.Define quota A quota is a government-imposed trade restriction that limits the number, or monetary value, of goods that can be imported or exported during a particular time period.

25. What is meant by “currency exchange rate”? In finance, an exchange rate (also known as a foreign-exchange rate, forex rate, ER, FX rate or Agio) between two currencies is the rate at which one currency will be exchanged for another. It is also regarded as the value of one country's currency in relation to another currency.

26. What is the main purpose of NAFTA? The North American Free Trade Agreement (NAFTA) was negotiated among the United States, Canada and Mexico for the purpose of removing barriers to the exchange of goods.

27. How does Latin America’s literacy rate affect its development? The Latin America's literacy rate affect its development because the rate is very very low that’s what it effects the development.

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