Southwest Asia Economics Test Review

What is human capital?

• skills and education workers have
• taxes collected from a country’s workers
• money paid to workers for producing goods
• the amount of goods sold in foreign trade in a year

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

• Their main industry 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.

Why would the Saudi oil industry need a large investment in human capital?

• The technology in the oil industry is very complicated.
• The Saudis have found it hard to make a profit in the oil industry.
• Most people working in the Saudi oil industry have little or no real training.
• They hope to have machines take over most of the jobs now done by workers.

If a country does not invest in its human capital, how can it affect the country’s
gross domestic product (GDP)?

• A. Investment in human capital has little effect on a country’s GDP.
• Most workers want to keep their jobs and do not care about GDP.
• GDP is only affected if workers pay for the investment out of their own pockets.
• GDP may go down because poorly trained workers will not be able to do their jobs as well.

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

Israel has invested heavily in capital goods in all of the following areas EXCEPT

• oil.
• defense.
• communication.
• farming and agriculture.

Why are oil and gas such valuable natural resources?

• Large deposits of oil and gas are found in most countries.
• It is easy to replace oil and gas supplies after they are used.
• Industrial countries depend on oil and gas as their energy supply.
• Oil and gas are the only sources of energy used around the world.

How has the Saudi government used its national wealth to change the country?

• All Saudi citizens are given an equal share of the national wealth.
• The Saudi government has spent very little to improve the lives of ordinary citizens.
• A majority of the national wealth has been given to religious organizations in the country.
• The government has paid for improvements in transportation, education, health care,and agriculture.

How has Israel’s lack of oil affected that country’s economy?

• Israeli businesses use little oil to operate.
• Israel has little industry dues to their lack of oil.
• The Israeli economy is built around large-scale farming.
• The Israeli economy depends on technology rather than natural resources, such as oil

What is an entrepreneur?

• people who enjoy saving all their money
• money
• someone who is always successful in whatever he attempts
• someone who is willing to take a risk to begin a new business