SW Asia Economy 1
What does OPEC stand for?
a) overpaid energy company
b)Organization of Petroleum Exporting Countries
c) Oil of Persian Economic Countries
B) Organization of Petroleum Exporting Countries
In this type of government system, the government makes all of the economic decisions.
A) Command
B) traditional
C) mixed
A) Command
What are two advantages to specialization?
1. Lower costs
2. Production Efficiency (achieving maximum productivity)
3. It makes products expensive to produce
4. It prevents trading
1. Lower costs
2. Production Efficiency (achieving maximum productivity)
How do entrepreneurs help increase a country's Gross Domestic Product. ( choose 2)
A) it creates new businesses
B) it creates jobs for people
C) By supporting a command economy
D) By allowing the government to control private businesses
A) it creates new businesses
B) it creates jobs for people
A country can raise its standard of living by
A) Investing in Human Capital
B) raising taxes
C) placing an embargo on trade
D ) Improve their Literacy Rates
A) Investing in Human Capital
D ) Improve their Literacy Rates
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
How can a country increase it's economic strength ?
A) increase it's population size
B) invest in human capital
C) place embargos on other countries
B) invest in human capital
Saudi Arabia specializes in?
OIL
What trade barrier restricts / limits 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
Economic Continuum of Israel, Turkey and Saudi Arabia. List where these countries fall on the Economic Continuum and explain why.
Iran, 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 strong.
A) it specializes in making automobiles.
B) it has arable land for agriculture
C) Saudi Arabia controls large reserves of oil.
Saudi Arabia controls large reserves of oil.
Members of OPEC can determine?
A) What types of agriculture it's members can grow.
B) How much each country can spend on capital resources
C) How much oil is exported from OPEC nations during a given amount of time.
How much oil is exported from OPEC nations during a given amount of time.
Tariff - Tax
Quota - limit
embargo-?????
stop
When countries focus on producing goods more efficiently and then trading with other countries in order to get what we need.
A) quota
B) specialization
C) barter
B) specialization
Investment in human capital( such as education to increase literacy rate) usually results in
A) an increase in GDP
B) a decrease in GDP
C) a decrease in trade
A) an increase in GDP
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
Investing in factories, buildings, technology to improve productive efficiency are examples of
A) human capital investment
B) capital goods or physical capital investment
C) embargo
B) capital goods or physical capital investment
Explain why some countries in SW Asia (Middle East) has an unstable economy.
Some countries in SW Asia do not produce oil to sale and make money from.