Middle East Economics Review

If Opec decided to cut oil production for the coming year, what would be the MOST LIKELY effect?

• Prices would not change

• Oil prices would probably rise

• Oil prices would probably decline

• The price for substitute products would decline

This map is depicting which international economic organization?

• CAFTA

• EU

• OPEC

• NAFTA

Which nation leads the Middle East region in the production and export of oil?

• Saudi Arabia

• Iran

• Iraq

• Kuwait

In 1973 OPEC limited the amount of petroleum available to the United States. Which term refers to one nation or group of nations isolating another nation by stopping trade?

• Blockade

• Boycott

• Embargo

• Quota

Why did Arab OPEC nations enforce an oil embargo against the United States in 1973?

• in retaliation for the placement of American troops in Iraq

• to protest the U.S.'s support of Israel in the Arab-Israeli War

• To protect the U.S.’s involvement in the Israeli-Egyptian conflict

• In retaliation for the U.S.’s role in the Shah’s Iranian government

How MIGHT a war with a country that is a member of OPEC impact citizens living in the United States?

• Gas prices may increase due to a rise in price of crude oil.

• Pharmaceutical exports dip as a result of increased tensions.

• The sale of foreign cars decreases due to an increase in tariffs.

• The automobile industry suffers due to a decrease in auto part exports.

How MIGHT a war with a country that is a member of OPEC impact citizens living around you?

• gas prices may increase due to a rise in price of crude oil

• pharmaceutical exports dip as a result of increased tensions

• the sale of foreign cars decreases due to an increase in tariffs

• the automobile industry suffers due to a decrease in auto part exports

In a traditional economy, the decision to make (or not make) certain products is decided MOSTLY by

• custom

• entrepreneurs

• government

• producers

In the Kingdom of Saudi Arabia the government controls every aspect of oil production which makes up the majority of the country's economy. While other businesses are owned by individuals, the biggest segment of Saudi Arabia's economy is oil production.

Saudi Arabia's economy would BEST be described as

• entirely market

• almost entirely command

• a mixture between just Market and Traditional

• a mixed economy with large amounts of command

Which statement about Saudi Arabia's economy is TRUE?

• Saudi Arabia is the world’s 3rd largest producer of oil.

• Most of the oil production is controlled by the government.

• The country’s oil industry is based completely on capitalism.

• Only native Saudis are allowed to work in the country’s oil fields.