Where in the World?!
In Saudi Arabia, Turkey, and Israel, the government has given most of the control over the economy to private citizens.
Which end of the Economic Continuum do these countries lean?
What is Pure Market?
This trade barrier take the form of taxes on imported goods to making them higher in price to deter consumers to buy imported goods and buy from inside the country.
What is a Tariff?
This is the value of all goods produced by a country in a year.
What is Gross Domestic Product?
What is the result if a country invests in the education and training of its citizens?
What is a increase (or higher) human capital?
If a company sends its employees to a workshop (educational meeting) so they can better understand the job they must complete; this company is investing in what part of their countries economy?
What is Human Capital?
This country has a Mixed-Command Economy, where the Government makes more of the economic decisions than its citizens; and the citizens do not have much economic freedom. With many being employed by the government, and others being farmers and artisans.
What is Iran?
This is a government regulation that forbids trade with another country due to conflict between the countries involved?
What is an Embargo?
This is the amount of people that are over the age of 15 that can read and write in a country.
What is Literacy Rate?
A country that invests in their capital goods and Human Capital are more likely to improve the countries __________________?
What is GDP?
or
What is Gross Domestic Product?
Mustafa is a nomadic Bedouin living in the Rub-al-Khali desert of Saudi Arabia. When Mustafa grows up, he expects to be a herder just like his father.
What type of economy does his community have?
What is Traditional?
In Saudi Arabia, the government plays a role in owning the oil industry and uses the money from selling oil to invest in new civilian-owned industries. While citizens enjoy more freedom in creating businesses, what type of economy does Saudi Arabia Have?
What is Mixed-Market Economy?
These are restrictions on the amount of a product that can be imported into a country, and can create shortages that cause prices to rise.
What is a Quota?
Define Standard of Living.
What is the amount and quality of services available to citizens in a country.
for example infrastructure (roads, bridges, electric lines, etc.), access to water, access to jobs, etc.
Why would it be difficult for an entrepreneur in Saudi Arabia to start a new business in the oil industry?
What is the oil industry is controlled by the Organization of the Petroleum Exporting (OPEC) Countries?
A country decides to invest more money into capital resources such as factories, machinery, and technologies. What has the country invested in in hopes to improve their GDP?
What is Capital Goods?
In 1973OPEC placed an embargo on which large country due to them supporting Israel in the Yom Kippur War, where Egypt and Syria invaded Israel.
This caused that country's economy to suffer, because many people could not afford to travel and work due to high gas prices.
What is The United States of America?
In the Middle East, the oil producing countries spend their oil profits on increasing what part of their economy?
What is Standard of Living?
In order to increase a country’s GDP, it must invest in what parts of their economy?
What is they need to invest in Human Capital and and Capital Goods. Entrepreneurship also increases GDP.
The three questions that every economy must answer are: what to produce, how to produce, and for whom to produce. Describe how a mixed Market would answer those questions?
What is a Market economy has less Government decision making and more individual freedom when answering these questions.
How has the discovery of oil in some Southwest Asian countries affected the economic development of this area?
What is the countries with oil reserves should be more developed than countries without oil.
The primary goal of the OPEC is?
What is to produce/supply oil and set the price for other countries?
How can trade barriers like tariffs and quotas improve the GDP of a country?
What is they all encourage citizens to buy more domestic products?
or
What is they all encourage citizens to buy more products from the home country?
What does OPEC stand for?
What is Organization of Petroleum Exporting Countries?
The three questions that every economy must answer are: what to produce, how to produce, and for whom to produce. Describe how a command would answer those questions?
What is a Command economy has all Government decision making and no individual freedom when answering these questions.
Hector wants to sell his products manufactured in his country of Belize to customers in Iran. This will involve him in international trade. Why does he need a system of currency exchange to do this?
What is he can have the correct price of his products in other nations and hopefully make a profit.