Middle East Economics

Which organization was created to manage petroleum prices in order to stabilize the world oil market?

• Countries Selling Oil (CSO)
• Countries with Oil for Sale (CWOFS)
• Organization of Petroleum Importing Countries (OPIC)
• Organization of Petroleum Exporting Countries (OPEC)

How has the creation of OPEC had an impact on the economies of its member nations?

• it has increased their profit
• it has decreased their profit
• it has reduced trade barriers
• it has fostered entrepreneurship

All of the following are ways OPEC has affected the world oil market EXCEPT…

• setting oil prices
• regulating the amount of oil produced
• selecting the countries to which oil can be exported
• taking oil from oil-rich countries and redistributing it to other countries

Which of the following statements about oil and the Middle East is true?

• Countries with oil reserves have a higher GDP
• Countries without oil reserves have a lower GDP
• Countries without oil reserves must specialize in other industries.
• All of the these statements are true

Which is the BEST example of specialization?

• A large business makes a variety of goods.
• A country has a large number of imports but no exports.
• A farmer grows crops, harvest crops, and sells crops to individuals and businesses.
• A factory builds seats that will be sold to different car manufacturers to be installed in a variety of cars.

After the Persian Gulf War, the United Nations imposed an embargo on Iraq. What would be the reason an embargo was used by the United Nations?

• To control the Iraqi economy after the War.
• To restrict trade with Iraq until they met UN requirements.
• To increase the cost of Iraqi products to help Iraq’s economy.

Which word has the same meaning as the economic term "tariff"?

• tax
• debt
• money
• savings

When a company educates and trains its people, it is investing in _______.

• structure
• transportation
• human capital
• natural resources

Which natural resource is significant to the economies of Middle East countries?

• iron ore
• gold
• oil
• coal

Jose is an auto mechanic in a nearby larger town. He has decided his own small town needs its own car repair shop. Jose bought the building and opened his shop. Jose is an example of _____.

• Trade surplus
• Opportunity costs
• Entrepreneur
• Gross Domestic Product