Economic Systems
People in a Traditional Economy produce for who?
Themselves and their families
What is currency?
$$$ Money $$$
Which Trade Barrier limits how many items you can bring in?
Quota
What do most countries in the Middle East specialize in?
Oil/Petroleum
What is infrastructure?
the basic physical and organizational structures and facilities (e.g. buildings, roads, power supplies) needed for the operation of a society or enterprise.
What does OPEC regulate?
Is it possible to have a pure command or pure market economy?
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Do all countries have the same currency?
No they do not!
President Nettleton says that country 7D can no longer trade with country 7A. He put in a full stop of trade with this country. Which trade barrier was described?
Embargo
What is specialization?
When a country picks one product to become really good at producing. Making it highly important to their economy.
What two major factors do we use to determine Standard of Living?
GDP per Captia
Literacy Rate
What are the three P's of OPEC?
Price
Production
Petroleum
How do people in a Command Economy decide what to produce?
They don't. The government decides what to produce.
Are all countries currencies worth the same amount?
No they are not.
President Nettleton puts a Tax on all cars imported into his country. What kind of trade barrier is he using?
Tariff
What kind of resource helps allow a country specialize in a product?
Natural Resources needed to make it.
What is Literacy Rate?
The percentage of people over the age of 15 that can read and write.
What does OPEC stand for?
Organization of Petroleum Exporting Countries
What factor drives how a Market economy works
Supply and Demand
1 US Dollar = 4 Saudi Riyal
You are visiting Saudi Arabia and want to buy a postcard to send home. The postcard cost 16 Riyal how many US dollars do you need?
$4 USD
Tariff = Tax
Quota = Limit
Embargo = Stop
What is the specialization of Turkey?
Clothing // Apparel
What is GDP per captia?
a measure of the countries standard of living. It is their total GDP divided by the number of people living in that country.
What is the mission of OPEC?
To control the price and production of oil in the world.
Define a Mixed Market
A economic system that is a combination of command and market. Where people have some economic freedom and the government regulates to some degree.
Why do countries need a system of Currency Exchange?
What do the three trade barriers have in common?
They are used to encourage domestic growth
(consumers to buy goods made in their home country.)
What does the country of Israel specialize in?
Technology
What is the definition of Standard of Living?
How comfortable people live in that country. With access to education, healthcare, and other goods.
What are the founding five members of OPEC?
Iran, Kuwait, Saudi Arabia, Iraq, Venezuela.