Question

Question:
On what natural resource does Isabela’s Ironworks depend?
A. Pig iron
B. Iron ore
C. Coal
D. Business loans
Why:
Ironworks rely on iron ore as the raw material used to make iron products.
2. Drug Trade and Latin American Governments
Question:
Which is an effect of the drug trade on Latin American governments?
A. The drug trade has led to economic reform throughout much of Latin America.
B. The drug trade has weakened democracy throughout much of Latin America.
C. The drug trade has reduced United States influence over governments in Latin America.
D. The drug trade has eliminated the existence of military dictatorships in Latin America.
Why:
Drug cartels create violence, corruption, and instability, which weaken democratic
governments and the rule of law.
3. Types of Economic Systems
Question:
In which type of economy does the government control the factors of production?
A. Mixed economy
B. Traditional economy
C. Command economy
D. Market economy

Answer 1

1) B. Iron ore — Ironworks need iron ore as the raw material to produce iron products.

2) B. The drug trade has weakened democracy throughout much of Latin America — Drug cartels foster violence, corruption, and instability that undermine democratic institutions and the rule of law.

3) C. Command economy — In a command economy the government controls the factors of production (land, labor, capital, and entrepreneurship).