Vocab
a form of government where unlimited power is held by a single leader, citizens have little to no role in the government
autocracy
What are three types of trade barriers?
embargo
tariff
quota
How does a country’s literacy rate typically affect it’s standard of living?
If a country has a high literacy rate, they typically have a standard of living.
Which country is governed by an absolute monarchy?
Saudi Arabia
What is the difference between a Presidential and Parliamentary Democracy?
In a Presidential Democracy, citizens elect both the legislative branch and the executive branch. In a Parliamentary Democracy, citizens elect only the legislative branch. The legislative branch selects the executive branch.
a form of government in which the people elect their representatives and participate in the government
democracy
The way a country answers three basic questions helps set the type of economic system it uses.
What are the three questions?
What to produce?
How to produce?
For whom to produce?
How can a country invest in human capital?
by investing in education for its citizens
What government system does Israel have?
Parliamentary Democracy
The Middle East is located where?
Southwest Asia
Which type of trade barrier is being described is the following sentence?
The U.N. punishes a country by refusing to allow other countries to trade with that country.
embargo
What four factors determine if a country's economy is healthy and growing?
capital goods, human capital, entrepreneurship, and natural resources
How does OPEC play a major role in world affairs?
They influence the price of oil on the world market.
What government system does Saudi Arabia have?
(autocracy) Absolute monarchy
What role do the people play in an absolute monarchy?
People have little to no influence in their government.
a person willing to take the risks to start a new business
entrepreneurship
Why do countries need a system for exchanging currencies?
to conduct international trade
Investments in capital goods will ______________ a country’s GDP.
increase
What government system does Turkey have?
Presidential Democracy
How does exchanging currencies impact international trade?
It makes international trade easier.
What is the primary function of OPEC?
to regulate the price of oil/petroleum
In which country does oil account for over 85% of its national budget?
Saudi Arabia
Describe the relationship of specialization and opportunity cost.
When countries specialize, they choose to make goods and services they can produce at a lower opportunity cost.
On an economic continuum put the following countries in order from closest to Pure Command to Pure Market.
Israel 70% free
Saudi Arabia 64% free
Turkey 65% free
Saudi Arabia
Turkey
Israel
What does OPEC stand for?
Organization of Petroleum Exporting Countries