Duplicate of SWA Economics and OPEC Assessment Review

Which of the follow is NOT one of the three basic economic questions?

• How to produce?

• What to produce?

• Why are economic resources needed?

• For whom to produce?

What is SPECIALIZATION?

• Producing all goods that the country needs -no need to trade

• Avoiding investing in capital goods because it's expensive.

• Producing goods a country can make most easily and trading

• Directly trading goods with another country without money

What is the purpose of OPEC?

• To unify oil policies & stabilize oil markets

• To provide free oil to all countries.

• To offer protection for countries that might have oil.

• To protect the consumers from Middle East countries.

Saudi Arabia specializes in the production of:

• Oil and olives

• Olives and grapes

• Livestock

• Oil and natural gas

Why has Israel specialized in the area of technology?

• It has few natural resources and little farmland.

• It has a poorly educated population.

• The money earned is used to support the military.

• The country has little in the way of fishing.

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

• Traditional

• Command

• Market

• Mixed

In a traditional economy, how are economic decisions made?

• Government leaders

• Consumers

• Customs and traditions

• A mix of consumers and government leaders

Why was OPEC created?

• To design new technology for getting oil out of the ground

• To regulate the supply and price of oil

• To keep non-members from producing any oil

• To help Palestinian Arabs with problems with Israeli Jews

Where are most OPEC countries located?

• Africa

• North Africa

• Southern and Eastern Asia

• Southwest Asia/Middle East

What happens to the price of oil when OPEC countries decide to reduce production?

• Oil prices decrease

• Oil prices increase

• Oil prices stay the same

• Oil becomes free to OPEC members