Middle East Economic Systems

Under which economic system does the government make almost all of the economic decisions?

• Command
• Market
• Traditional
• Capitalist

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

• What to produce, how to produce it, and for whom to produce the goods
• When to produce, why to produce, and how long to produce
• to what extent to produce, how much to produce, why to produce
• what to produce, why to produce, and how much to produce

In a traditional economy, how are economic decisions made?

• Custom & habit
• Government planners
• Consumers & the market
• Combination of consumers and government planners

Which would be a problem in a command economy?

• individuals trying to start a new business
• workers forced to do jobs they did not care to do
• local crafts produced before manufactured goods
• government planners set prices for goods produced

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

• mixed
• market
• command 
• traditional

How have the Israelis made up for their lack of natural resources?

• They have put everyone to work and have no unemployment
• They have relied primarily on farming to keep their economy going
• They have developed strong technology companies in their economy
• Israelis have refused to import oil, saving huge amounts of money each year

What is "economic specialization"?

• directly swapping goods from one country to another without having to use money
• trying to avoid investing in industry and technology because of the expense involved
• producing all goods and services needed for a country's growth, so that trade with other countries is not needed
• producing those goods a country can make most efficiently so they can trade them for goods made by others that cannot be produced locally

Which location identifies where MOST of the world economies would be placed on this graphic?

• At point A
• At point B
• Between points A & B
• Between points C & D

Which describes how MOST countries around the world answer basic economic questions?

• A miture of command and market econommies
• Most countries are pure market economies
• Most countries are pure command economies
• A mixture of traditional and market economies

Many major industries in Saudi Arabia have significant government involvement or are government controlled. Based solely on this information, which type of economic system would BEST describe Saudi Arabia?

• market
• federalist
• traditional
• command