47 - Trade and OPEC in SW Asia Remediation

Multiple Choice

Which two countries depend on oil as their most important natural resource?

• Israel and Turkey

• Israel and Iran

• Saudi Arabia and Turkey

• Iran and Saudi Arabia

Multiple Choice

Which is true about oil in the Middle East?

• Oil is found in all countries of the Middle East.

• Larger countries have more oil than smaller countries.

• Some countries may have oil, others may not.

• Small countries do you have oil.

Multiple Choice

Which of the following correctly shows how natural resources are unevenly distributed in Southwest Asia?

• Abundance of oil, but a scarcity of water

• Abundance of coal, but a scarcity of copper

• Abundance of natural gas, but a scarcity of oil

• Abundance of water, but a scarcity of phosphates

Multiple Choice

What is a tariff?

• A tax on imports
• A limit on imports
• A halt to trade
• A tax on exports

Multiple Choice

What is an embargo?

• A tax on imports
• A limit on imports
• A halt to trade
• A tax on exports

Multiple Choice

What is a quota?

• A tax on imports
• A limit on imports
• A halt to trade
• A tax on exports

Multiple Choice

Why do countries need an exchange rate?

• to promote tourism

• to determine GDP

• to see who has the most money

• to trade with each other

Multiple Choice

What is specialization?

• when a country produces only the goods it can make easily and efficiently, and then trades to get other goods

• when a country produces only special goods, and then trades to get other goods

• when a country produces only the goods to export, and then trades to get other goods

• when a country only imports goods, and then trades to get other goods

Multiple Choice

What are sanctions?

• A tax on imports

• When the government of a country gives money to certain businesses so that they can continue to compete with imports from other countries

• when countries use trade barriers, like quotas or tariffs, to punish another country

• A tax on exports

Multiple Choice

Why are most countries better off specializing in the production of particular goods, and then trading with other nations to obtain whatever else they need?

• Transportation costs are lower than they were a century ago.

• Resources are not evenly distributed among countries.

• Greater investment of capital goods increases productivity.

• People have limited resources to satisfy unlimited wants.

Multiple Choice

Read the following two statements:

1. Nation A produces cars more efficiently than it can grow food crops.

2. Nation A produces cars and buys food from Nation B.

What principle of economics is illustrated by these two statements?

• Laws of Supply and Demand

• Scarcity

• The Factors of Production

• Specialization

Multiple Choice

Why was OPEC created?

• To regulate the supply and price of oil

• to help the Palestinians in their problems with Israel

• to design new machinery to get oil out of the ground

• to keep countries that are not members from producing any oil

Multiple Choice

What happens to the price of oil when OPEC countries decide to limit production?

• prices rise

• prices drop

• prices stay the same

• oil stops being sold

Multiple Choice

How do Iran and Saudi Arabia benefit from belonging to the Organization of Petroleum Exporting Countries (OPEC)?

• OPEC keeps the price of oil high on the world market

• Countries in OPEC are able to share water resources with each other

• The organization sets up tariffs to protect Southwest Asian manufacturing

• OPEC makes it possible for Southwest Asian countries to buy oil at low prices