Types of Economies
What type of economy do most Southwest Asian nations have?
A) Mixed Economy
B) Command Economy
Mixed economy
Why does international trade require a system for exchanging currency?
A) Each country has different money values
B) All countries use the same money
Different countries have currencies with different values.
What should a country specialize in producing?
-A) What it makes best
B) What other countries already make
Goods it can produce most efficiently.
How do entrepreneurs benefit the economy?
They start new businesses and create jobs
Which industry is most important to the Saudi Arabian economy?
Oil
In a traditional economy, who usually decides what to produce and how to produce it?
A) The government
B) Customs and family traditions
Customs and traditions (family or community roles)
What must a Turkish businessman do before buying a meal in China?
A) Exchange Turkish money for Chinese money
B) Use U.S. dollars
Exchange Turkish money for Chinese money.
Why does specialization encourage voluntary trade?
A Countries produce what they make best and trade for what they need.
B) To avoid using money
Countries produce what they make best and trade for what they need.
How does entrepreneurship help economic growth in Saudi Arabia?
A) By creating goods and services
B) By stopping trade
By creating new goods and services.
What would happen if OPEC decided to produce less oil?
A) Oil prices go up
B) Oil prices go down
The price of oil would increase.
How do command economies rank the interests of people, the government, and consumers?
A) The government
B) The people
The government’s interests are ranked over the people’s.
What is a quota in international trade?
A limit, Tax, A ban
A limit on the amount of goods that can be imported from a country.
What is the main goal of trade barriers like tariffs?
-A tax to protect domestic industries from foreign competition
-A tax to protect foreign industries from local competition
To protect domestic industries from foreign competition
What do entrepreneurs risk when starting a new business?
A) Their own money
B) Other people’s money
Their own money and resources.
Why is Saudi Arabia’s economy stronger than Iran
Because Saudi Arabia controls large reserves of oil.
What does the term “mixed economy” mean?
A) It has both market and command elements
B) It only uses bartering
An economy with both command and market elements.
What do tariffs, quotas, and embargoes have in common?
A)They all encourage citizens to buy domestic products
B) Make foreign goods cheaper
They all encourage citizens to buy domestic products
What happens when trade barriers are lowered between countries?
A) More trade and choices
B) Less trade and higher prices
Trade increases and consumers have more choices.
Why is entrepreneurship important for developing countries?
A) It creates innovation and jobs
B) It reduces learning
It encourages innovation and reduces unemployment.
How can a country raise its standard of living?
A) Invest in education
B) Close schools
By improving literacy rates through investment in education.
Which type of economy relies only on supply and demand to determine production?
A) Market economy
B) Command economy
Pure market economy
What organization controls oil production and influences global oil prices?
-OPEC (Organization of the Petroleum Exporting Countries)
-OPET (Organization of the Petroleum Exporting Trade)
OPEC (Organization of the Petroleum Exporting Countries)
What is one disadvantage of high tariffs?
A) Imports become more expensive
B) Goods become cheaper
Imported goods become more expensive for consumers.
How can governments support entrepreneurship?
A) Invest in education and training
B) Raise business taxes
By investing in education and reducing business restrictions.
Nations in the Middle East with little access to oil often have lower
A) Fewer resources to improve living conditions
B) Too many exports
Have a lower GDP/ LOWER STANDARD OF LVING