SW Asia Economy

What are the 3 basic economic questions that all economic systems must answer?

• What to produce, how to produce it, and for whom to produce the goods
• When to produce, why to produce, and how long to produce
• To what extent to produce, how much to produce, why to produce
• What to produce, why to produce, and how much to produce

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

• Traditional
• Pure Market
• Mixed Command
• Mixed Market

In a market economy, who makes the economic decisions?

• subsistence farmers (grow just enough to feed family)
• custom and habit (do what ancestors did)
• government planners (public control)
• people (productions based on supply and demand)

Which industry does Saudi Arabia's government specialize in?

• Oil
• technology
• agriculture
• textile manufacturing

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

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

Which of these Southwest Asian nations has the MOST secure and reliable access to water?

• Iraq

• Kuwait

• Israel

• Turkey

In this economy, the government produces its signature brand of shoe-flavored chips and determines that it will be sold in all stores for $1.25 per bag. Which type of economy is this?

• Traditional Economy
• Market Economy
• Mixed Economy
• Command Economy

In this economy, manufacturers of automobiles control the number of vehicles produced each month in an effort to avoid surpluses that would minimize their profits.

• Big Wheels economy
• Market economy
• Command economy
• Traditional economy

Why do countries need a system for exchanging currencies?

• To assist economic growth
• To encourage business loans
• To conduct international trade
• To support commercial treaties

Israel has specialized in the area of technology because:

• It has few natural resources.

• It has a poorly educated population.

• The money earned is used to support the military.

• The country has little in the way of fishing.