Middle East Economy Review

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

• Mixed
• Market
• Command
• Traditional

In a market economy who makes the economic decisions?

• farmers
• custom and habit
• government planners
• consumers and the market

Which industry in Saudi Arabia does the government largely control?

• Oil
• technology
• agriculture
• textile manufacturing

Why was OPEC created?

• To regulate the supply 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

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

Why is it important for nations to have a system to convert from one currency to another?

• Converting to different currencies makes goods cost less
• Banks are not able to handle different kinds of currency
• The dollar is the most valuable currency in the world today
• This makes it possible to buy and sell goods between nations with different types of currency

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

• Their main investment is the oil industry
• Investing in human capital takes very little money
• They have to bring in workers from other countries
• They need well trained workers because their economy depends on advanced technology

What are capital goods?

• The workers who make the goods and services
• The factories and machines used to make goods
• The money spent to train workers to use new technology
• The goods and services that are produced for a country's economy

 A limit to the number or amount of a foreign produced good that is allowed into the country is known as

• A tariff
• A quota
• An Embargo
• A natural trade barrier

A tax placed on goods coming into a country from another country is known as

• A tariff
• A quota
• An embargo
• A natural trade barrier