Exam 5: Latin American and Primary Commodities

Describe why the price of a commodity like soybeans can be naturally volatile. How could this create a macroeconomic problem for a small, relatively poor country such as Paraguay?

Over the last 10 years there was a boom in the price of quinoa caused by an increase in demand. This boom was followed by a collapse in prices. Show and describe both the initial high price and the subsequent collapse.

What is the term used to describe the effects of commodity exports on other parts of the economy?

The effects of commodity exports on the exchange rate and non-commodity exports is known as:

Show and describe how a commodity boom results from an interaction of demand and/or supply.

Why are the prices of commodities so volatile?

Briefly describe how income from commodities can be used to enhance economic development.

Draw a graph and show why commodity prices tend to be unstable. Why does this matter for Latin America?

In the GDP equation, the term X-M is known as:

What percent of total exports in Latin America are accounted for by commodities?

The effect that commodity exports can have on the exchange rate is known as:

National treatment on multinational corporations was typically the normal during the:

Describe the importance of commodities in Latin America in terms of total exports and GDP.

Which of these has not been a commodity boom in Latin America since 1500?

Which two Latin American nations have a checkered history with state owned oil companies?

Show why naturally commodity prices are very volatile. Why does this matter to Latin America?

How are the resource curse and Dutch disease different?

The first commodity booms in Latin America were based around the export of:

What percent of GDP is accounted for by commodity exports in Latin America?