SW Asia Economy 1
What does OPEC stand for?
Organization of Petroleum Exporting Countries
In this type of government system, the government makes all of the economic decisions.
Command
What are two advantages to specialization?
1. Lower costs
2. Production Efficiency (achieving maximum productivity)
Explain how entrepreneurs help increase a country's Gross Domestic Product.
1. Improve their Literacy Rates
2. Investing in Human Capital
Which economic system is this:
1. economic decisions are based on individuals who decide what to produce and what to buy.
2. Supply and Demand
3. No government involvement
4. Resources are unequally distributed
Market Economy
What does literate means? Why is it important to be literate?
Lacking basic reading and writing skills is a tremendous disadvantage. Literacy not only enriches an individual's life, but it creates opportunities for people to develop skills that will help them provide for themselves and their family.
Saudi Arabia specializes in?
OIL
What trade barrier restricts the quantity of an item that is brought into a country?
Quota
This economic system allows the government to make all of the economic decisions.
Command
What is OPEC's function?
To regulate oil production and prices
Go to the board and draw an Economic Continuum of Israel, Turkey and Saudi Arabia. List where these countries fall on the Economic Continuum and explain why.
Saudi Arabia, Turkey, Israel
What is the definition of Literacy Rate?
The percentage of people in a country who are 15 years and older that can read and write.
What is the definition of Gross Domestic Product
The total value of goods and services produced in a country in one year.
Why is the economy of Saudi Arabia much stronger than other Southwest Asian countries like Yemen and Oman?
Saudi Arabia controls large reserves of oil.
Members of OPEC can determine?
How much oil is exported from OPEC nations during a given amount of time.
Iran and Venezuela
How did specialization increase production?
Specialization allowed countries to focus on producing goods more efficient and then trading with other countries in order to get what we need.
What are the 4 factors of economic growth in a country?
Investment in:
1. Human Capital (Increases the literacy rate)
2. Capital Goods
3. Natural Resources
4. Entrepreneurship
Which type of economy are producers least likely to produce a surplus of goods?
Traditional Economy
Which economic system is this:
1. economic decisions are based on customs and habits.
2. Jobs are passed down from generation to generation.
3. Bartering
4. Subsistence Farming
5. No one can own their own business
Traditional Economy
What happens to the prices of oil when OPEC countries decides to limit production?
Prices Rise
Israel specializes in?
Technology
What are capital goods? Why do businesses invest in capital goods?
factories, buildings, technology
to improve productive efficiency
Some countries in SW Asia do not produce oil to sale and make money from.