What do the economies of Israel, Saudi Arabia, and Turkey all have in common?

• They are all mixed economies.

• They are all command economies.

• They are all poor economies.

• They are all market economies.

Why is it necessary for countries to have an exchange rate?

• Trade between nations is expensive; an exchange rate lowers the costs involved.

• The dollar is highly valuable throughout the world; every country wants to trade with the U.S.

• There are many currencies in the world; an exchange rate makes trade possible.

• Money is a universal form of payment; there is no need for an exchange rate.

What is the purpose of tariffs?

• They encourage consumers to buy imported products.

• They encourage consumers to buy domestic products.

• They encourage increased trade between nations.

• They cut the cost of goods and services.

Which of the following defines the term specialization?

• Goods that bring in high amounts of revenue and tariffs.

• Goods that are produced efficiently and in large quantities.

• Goods that are produced slowly in low quantities.

• Goods that are imported from nations around the world.

Most of the oil in the Middle East is found in nations that

• border the Red Sea.

• have access to the Suez Canal.

• are not Saudi Arabia.

• surround the Persian Gulf.

Which of the following BEST describes the role of entrepreneurs?

• They take the risks necessary to start a new business.

• They come up with new ideas for goods and services.

• They often create jobs for people.

• All of the above.

Why is water a source of conflict in the Middle East?

• Because of unequal distribution and limited access to fresh water sources.

• Because of competition between companies that desalinate water.

• Because there are people who believe water should go to only the wealthiest nations.

• Because there is so much water in SW Asia, nations fight over who should control it.

Which of the following is NOT a cause of water shortages in SW Asia?

• pollution

• population decreasing

• dry land

• agriculture

What does OPEC stand for?

• Organization of People Exporting Countries

• Octet of Petroleum Exporting Companies

• Organization of Petroleum Exploding Countries

• Organization of Petroleum Exporting Countries

What is the primary function of OPEC?

• To determine who gets oil and who does not.

• To regulate the price of oil on the global market.

• To decide how much oil should be traded between nations.

• They have no function; they are just a group of countries.