Middle East Economies 21-22

What 3 economic questions are asked when studying the similarities of traditional, command, market, and mixed economies among nations of the world?

• What to produce, why to produce, when to produce?
• What is your opportunity cost, what economic resources are needed, why should these resources be used?
• What to produce, how to produce, and for whom to produce?
• What is your opportunity cost, why are economic resources needed, when should these resources be used?

What is ‘specialization’?

• Producing all goods that the country needs so that trade with other countries isn’t necessary
• Trying to avoid investing in capital goods because it’s too expensive
• Producing goods a country can make most easily so that they can trade for goods that they can’t produce locally
• Directly trading goods with another country without having to use money
  

Why is specialization so valuable to international trade today?

• Most countries only make one product really well.
• Specialization allows people to do a more efficient job at producing what they make best and trade for the things they need.

Saudi Arabia specializes in the production of:

• Oil and olives
• Olives and grapes
• Oil and natural gas
• Livestock
  

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

• Traditional
• Command
• Market
• Mixed

In a traditional economy, how are economic decisions made?

• Government leaders
• Consumers
• Customs and traditions
• A mix of consumers and government leaders

What is the definition of Gross Domestic Product (GDP)?

• The total value of all the goods and services a country produces in a year
• The total value of all goods imported within a year
• The total value of taxes collected in a year
• The total value of all goods produced by entrepreneurs in a year

Which Southwest Asian country’s businesses are under the LEAST amount of government control?

• Israel
• Saudi Arabia
• Iran
• Syria

Tariffs and quotas are alike because they both __________________.

• restrict or limit trade between countries.
• completely stop trade between countries.
• increase trade between countries.
• make trading a lot easier between countries.

If Saudi Arabia’s government puts a limit on how much Israeli Dead Sea salt it will import this year, what trade barrier is this?

• Embargo
• Tariff
• Quota
• Opportunity Cost