7 SS Southwest Asia Economics Review

The purpose of OPEC, the Organization of Petroleum Exporting Countries, is to

• stabilize the price of oil and ensure a regular supply of oil to other countries

• manage the oil production and

  pricing in the Middle East only

• regulate the regulations of oil production in the Middle East

• stabilize the agriculture industry around the world

Specialization encourages trade between countries and allows one country to produce a good or service efficiently.

• True

• False

The discovery of this non-renewable resource moved Saudi Arabia's economy from traditional to command to now a mixed market. What is this resource?

Hint- It is exported out of Saudi Arabia to the rest of the world!

• fresh water

• salt

• oil

• wood

Unemployment is high in Iran among young men due to their lack of skills. What could be one cause for this problem?

• lack of investment in human capital

• lack of investment in machinery

• high investment in the military

• lack of natural resources

An embargo means that I am trading only a few goods and service with a country that I have a conflict with.

• True

• False

Israel improves their country economy and gross domestic product through

• harvesting and selling oil

• selling surplus water

• their advancements in farming and high-tech equipment

• building weapons

Israel has a mixed market economy, this means they have small businesses opened and run by the citizens as well as government run businesses and regulations.

• True

• False

The government of Saudi Arabia decides to improve the gross domestic product of the country by investing in human capital. Which action will the government MOST LIKELY take?

• establish currency exchange policies

• increase trade barriers

• invest in educational opportunities such as free tuition

• purchase manufacturing equipment

Why is it important to have a system for exchanging currencies between nations?

• to encourage trade

• to encourage new business

• to protect small businesses

• to stop the rising cost of products

Which is a common role of entrepreneurs?

• to help protect the environment

• to start and run a business

• to manage a school

• to grow food