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100
Land, labor, capital, and entrepreneurship are the
results of supply and demand
100
The price of one nation's currency in terms of another nation's currency is called
the exchange rate.
100
The per capita income for Saudi Arabia for 2007 was $37,300. The per capita income for Israel was $1,000. The presence of which resource BEST explains the vast difference in incomes for these two nations?
oil
100
During a war which type of trade barrier is often used the most between the warring countries.
embargo
100
How might the distribution of oil affect the development of the United Arab Emirates?
The abundance of oil has produced greater economic output.
100
Which statement about Saudi Arabia's economy is TRUE?
Most of the oil production is controlled by the government.
200
Which characteristic is PRIMARILY associated with a command economy?
centralized decision making about what will be produced
200
This map is depicting which international economic organization?
OPEC
200
In this type of economic system, the production of goods and services is controlled solely by the concept of supply and demand, businesses are operated for profit, and the government is not involved.
market
200
How does the presence of entrepreneurs help a country's economy?
Entrepreneurs help to create jobs.
200
Which example might work to limit trade between countries?
a quota on imports and exports
200
The country of Saudi Arabia has invested heavily in improving its human capital and physical capital. Which is a likely result of this increased investment?
Gross Domestic Product (GDP) rises
300
In a command economy, prices are
determined by supply and demand.
300
The higher a county's economic development, the
higher the literacy rate.
300
Which statement BEST describes an economic reason why Israel has a 97.1% literacy rate compared to a literacy rate of 79.4% in Iran?
-Israel is smaller in size than Iran and can afford more teachers.
-Israel spends a smaller percentage of its GDP on education than Iran does.
-Israeli law calls for mandatory education up to age 18, while Iranian law does not.
-Israel spends approximately 10% of its GDP on education while Iran spends 4.6% of its GDP.
Israel spends approximately 10% of its GDP on education while Iran spends 4.6% of its GDP.
300
What can be concluded by studying this chart?
Starting a business is not terribly difficult, but getting a license can be time-consuming.
300
What is a trade barrier?
anything that restricts the amount of trade
300
The country of Saudi Arabia has seen its literacy rate go from below 50% in 1980 to over 75% in 2012. Which is a likely outcome of this increase?
Gross Domestic Product (GDP) rises
400
If OPEC decided to cut oil production for the coming year, what would be the MOST LIKELY effect?
oil prices would probably rise
400
In a traditional economy, the decision to make (or not make) certain products is decided MOSTLY by
custom
400
Why might there be such a drastic difference in the per capita GDP of these selected countries of Southwest Asia (the Middle East)?
access to oil fields
400
What is the BEST explanation as to why Israel produces so few barrels of oil?
They have very little oil to drill and extract.
400
When determining standard of living in a country, which indicator will be the most practical and reliable?
per capita GDP
400
Based on this information, which statement would you MOST likely expect to be true?
Literacy rates impact GDP per capita.
500
An exchange rate is used to
determine the price of one country's currency in terms of another country's currency.
500
Which of these terms is the BEST synonym for the word "entrepreneur"?
"business owner"
500
Why is a system of currency exchange necessary for international trade?
There must be a way to pay for goods purchased from countries with different types of currencies due to Nationalism
500
What organization exists to protect the interests of nations for which petroleum is an important export?
OPEC
500
Which Middle Eastern country would you expect to have an economy that is more market-based than command-based?
Israel
500
In the early 21st century, Iran continued attempts to develop its nuclear program. In response, the United States and other countries imposed trade barriers against Iran. The goal of the trade barriers was to stop Iran's nuclear program.
Why is an embargo a more effective trade barrier in this circumstance than a quota?
Look up the answers for these short answer questions and be prepared for the test.