AKS 46 Review

Front

What are the 3 basic economic questions that all economic systems must answer?

Back

What to produce, how to produce it, and for whom to produce the goods

Answer explanation

The correct answer is 'What to produce, how to produce it, and for whom to produce the goods' as these are the fundamental questions every economic system must address to allocate resources effectively.

Front

The economies of Israel, Saudi Arabia, Turkey, and Iran could be best described as

Back

Mixed Market

Answer explanation

The economies of Israel, Saudi Arabia, Turkey, and Iran are best described as Mixed Market because they combine elements of both market and command economies, allowing for private enterprise alongside government regulation.

Front

In a market economy, who makes the economic decisions?

Back

people (productions based on supply and demand)

Answer explanation

In a market economy, economic decisions are made by people based on supply and demand. This allows for flexibility and responsiveness to consumer needs, unlike subsistence farming, customs, or government planning.

Front

Which industry does Saudi Arabia's government specialize in? Options: Oil, technology, agriculture, textile manufacturing

Back

Oil

Answer explanation

Saudi Arabia's government specializes in the oil industry, which is the backbone of its economy. The country is one of the largest oil producers in the world, making 'Oil' the correct answer.

Front

In this economy, the government produces its signature brand of shoe-flavored chips and determines that it will be sold in all stores for $1.25 per bag. Which type of economy is this?

Back

Command Economy

Answer explanation

In a command economy, the government controls production and pricing. Here, the government sets the price of shoe-flavored chips at $1.25, indicating it dictates the market rather than allowing supply and demand to determine prices.

Front

In this economy, manufacturers of automobiles control the number of vehicles produced each month in an effort to avoid surpluses that would minimize their profits.

Back

Market economy

Answer explanation

In a market economy, manufacturers adjust production based on demand to maximize profits, as seen in the automobile industry. This contrasts with command or traditional economies, where production is controlled by the government or customs.

Front

Israel has specialized in the area of technology because:

Back

It has few natural resources.

Answer explanation

Israel has few natural resources, which has driven the country to specialize in technology to enhance economic growth and self-sufficiency. This need for innovation has led to advancements in various tech sectors.

Front

Which of the following country’s businesses have the least amount of government control? Israel, Saudi Arabia, Iran, Syria

Back

Israel

Answer explanation

Israel has a more liberal economic system with less government intervention compared to Saudi Arabia, Iran, and Syria, where businesses face significant state control and regulation.

Front

Which of the following would reflect Israel’s mixed economy?
Options:
Prices and wages are regulated by the country’s government.
Businesses are privately-owned businesses with government regulations.
The country’s distribution of resources is based on inheritance.
Economic decisions are based on customs and beliefs of ancestors.

Back

Businesses are privately-owned businesses with government regulations.

Answer explanation

Israel's mixed economy is characterized by privately-owned businesses that operate under government regulations, balancing free market principles with state intervention.

Front

Which of these natural resources is in extremely short supply in the Middle East? Water, Coal, Iron, Oil

Back

Water

Answer explanation

Water is in extremely short supply in the Middle East due to its arid climate and limited freshwater resources, making it a critical issue for the region, unlike coal, iron, and oil which are more abundant.