SW Asia Econ Unit Test Review

A Tariff is an example of ________________.

• A trade barrier.

• A type of economy.

• A government position.

• An economic system that allows entrepreneurship.

A country wants to protect their local workers and industries from foreign competition. Which of the following would best achieve their goal?

• Impose a tariff.

• Lower the GDP.

• Raise the GDP.

• Engage in specialization

What describes a traditional economy?

• This system includes elements of the three other economic systems.

• The government controls all aspects of this system. Although the government sets aside resources for the common good of the people, this system was not designed to meet the wants of consumers.

• This system allows people to make their own economic choices including starting a business; it also allows consumers to spend their money as they wish.

• In this system, social roles and culture play a major role in how goods and services are made, how much money people make, and who can buy certain goods.

What describes a market economy?

• This system includes elements of the three other economic systems.

• The government controls all aspects of this system. Although the government sets aside resources for the common good of the people, this system was not designed to meet the wants of consumers.

• This system allows people to make their own economic choices including starting a business; it also allows consumers to spend their money as they wish.

• In this system, social roles and culture play a major role in how goods and services are made, how much money people make, and who can buy certain goods.

What describes a command economy?

• This system includes elements of the three other economic systems.

• The government controls all aspects of this system. Although the government sets aside resources for the common good of the people, this system was not designed to meet the wants of consumers.

• This system allows people to make their own economic choices including starting a business; it also allows consumers to spend their money as they wish.

• In this system, social roles and culture play a major role in how goods and services are made, how much money people make, and who can buy certain goods.

Which of the following best explains why Saudi Arabia falls on the continuum where it does?

• Private ownership is very common in Saudi Arabia

• Most business in Saudi Arabia is controlled by the government

• Saudi Arabia has more private ownership than Turkey

• Saudi Arabia has less government control than Israel

What kind of economy does Israel have?

• traditional

• mixed; more market than command

• pure command

• pure market

In country A, the mountains are full of diamonds and coal. The country uses these natural resources to create jewelry and power their machines, which they use to trade with other countries. Most citizens work as miners or jewelry-makers. This description best describes

• Opportunity Cost

• Specialization

• Diversification

• Differentiation

How could a high tariff on imported corn help the people in the country charging the tariff?

• The corn process would be lower if tariffs were in place

• Local corn would always be of higher quality than corn from other countries

• Local corn would be more plentiful because it was grown closer to the markets

• Local farmers would be able to sell their corn since it would be cheaper than the imported corn.

How does voluntary trade help the countries involved?

• It helps them form a partnership so they can barter.

• It helps them get items they need while making money off of their own products.

• It helps them pay taxes on tariffs.

• It helps them place embargoes on other nations.