Middle East Economics

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

• mixed
• command
• market
• traditional

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

• Everyone has a job, there is no unemployment
• They have developed strong technology companies
• They rely on farming
• They refuse to import oil, which saves money

Saudi Arabia specializes in the production of

• oil and gas
• oil and sugar
• olive and orange
• beef and chicken

Israel specializes in

• medical industry
• scientific industry
• Oil
• technologies

Why was OPEC created?

• to regulate the supply and price of oil
• to design new machinery to produce oil
• to help the Palestinians
• to keep non-member countries from producing any oil

Where are most OPEC countries located?

• Africa
• North America
• South America
• Southwest Asia

Why have the Israelis made a big investment in human capital?

• their main industry is the oil industry
• they have to bring in workers from other countries
• investing in human capital takes very little money
• they need well-trained workers because of their technology

If a country does not invest in its human capital, how can it affect the country's GDP?

• investment in human capital has little effect on GDP
• GDP is only affected if workers do a bad job
• most workers want to keep their jobs and don't care about GDP
• GDP may go down because poorly trained workers do a bad job

What are capital goods?

• the workers who make the goods and services
• the money spent to train workers on technology
• the factories and machines used to make goods
• the goods and services produced

Why are oil and gas such valuable natural resources?

• large deposits of oil are found in most countries
• industrial countries depend on oil/gas as the energy supply
• it is easy to replace these after they are used
• oil and gas are the ONLY sources of energy available