SW Asia Economy 1
What does OPEC stand for?
Organization of Petroleum Exporting Countries
In this type of government system, the government makes all of the economic decisions.
Command
What are two advantages to specialization?
1. Lower costs
2. Production Efficiency (achieving maximum productivity)
Explain how entrepreneurs help increase a country's Gross Domestic Product.
1. Improve their Literacy Rates
2. Investing in Human Capital
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
What does literate means? Why is it important to be literate?
Lacking basic reading and writing skills is a tremendous disadvantage. Literacy not only enriches an individual's life, but it creates opportunities for people to develop skills that will help them provide for themselves and their family.
Saudi Arabia specializes in?
OIL
What trade barrier restricts 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
The current economic freedom continuum has the countries in which order from closer to a control economy to a market economy?
Saudi Arabia, Turkey, Israel (all closer to market than command)
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 stronger than other Southwest Asian countries like Yemen and Oman?
Saudi Arabia controls large reserves of oil.
Members of OPEC can determine?
How much oil is exported from OPEC nations during a given amount of time.
Some of Turkey's main areas of specialization
What are automobiles, textiles, and agriculture?
What kind of system must the countries of SW Asia use to participate in global trading?
currency exchange
What are the 4 factors of economic growth in a country?
Investment in:
1. Human Capital (Increases the literacy rate)
2. Capital Goods
3. Natural Resources
4. Entrepreneurship
Which type of economy are producers least likely to produce a surplus of goods?
Traditional Economy
1. economic decisions are based on customs and habits.
2. Jobs are passed down from generation to generation.
3. Bartering
4. Subsistence Farming
Traditional Economy
What happens to the prices of oil when OPEC countries decides to limit production?
Prices Rise
Israel specializes in?
Technology, diamond polishing, and manufacturing
What are capital goods? Why do businesses invest in capital goods?
factories, buildings, technology
to improve productive efficiency
Explain why some countries in SW Asia (Middle East) have an unstable economy.
Some countries in SW Asia do not produce oil to sell and make money from and have to depend on less-valuable resources like dates, palm oil, goats, and camels.