SW Asia Economics Study Guide

As you move along the economic continuum from market to command, what happens to the amount of government involvement in the economy??

• It decreases
• It increases
• It stays the same

As you move along the economic continuum from market to command, what happens to the amount of economic freedom in the system?

• It decreases
• It increases
• It stays the same

Which Middle Eastern economy has the most free (from government control) mixed economy?

• Israel

• Turkey

• Saudi Arabia

• None of the above

What is specialization?

• Producing all goods that the country needs so that trade with other countries isn't necessary.

• Trying to avoid investing in capital goods because it's too expensive

• Producing goods a country can make most easily so that they can trade for goods that they can't produce locally.

• Directly trading good with another country without having to use money.

Why is specialization so valuable to international trade today?

• Most countries only make one produce really well.

• Specialization allows people to do a more efficient job at producing what they make best and trade for things they need.

• It keeps the prices low on imported goods.

• It limits the amount of agriculture a country allows.

Saudi Arabia specializes in the production of

• oil and olives

• olives and grapes

• oil and natural gas

• livestock

Why has Israel specialized in the area of technology?

• It has few natural resources and little farmland

• It has only 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, and Turkey 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.

Were are most OPEC countries located?

• Africa

• North America

• Southern and Eastern Asia

• Southwest Asia