SW Asia Economics 2019

What 3 economic questions are asked when studying traditional, command, market, and mixed economies?

• What to produce, why to produce, when to produce?

• What is your opportunity cost, what economic resources are needed, why should these resources be used?

• What to produce, how to produce, and for whom to produce?

• What is your opportunity cost, why are economic resources needed, when should these resources be used?

Why do businesses specialize?

• Because they can sell more types of goods.

• So they can produce goods at a slower pace.

• So the workers will not become experts in their jobs.

• Because they produce more goods in less time for less money.

Why is specialization so valuable to international trade today?

• Most countries only make one product really well.

• Specialization allows people to do a better job at producing what they make best and trade for the 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

• Natural gas and oil

• Livestock

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.

The economies of Israel, Saudi Arabia, and Turkey can best be described as:

• Traditional

• Command

• Market

• Mixed

Where are most of the countries of OPEC located?

• Africa
• South America
• North America
• Southwest Asia

Why was OPEC created?

• To regulate the supply and price of oil
• To help the Palestinians in their problems with Israel
• To design new machinery to get oil out of the ground
• To keep countries that are not members from producing any oil

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.

How has Israel's lack of oil affected that country's economy?

• Israeli businesses use little oil to operate.
• Israel has little industry dues to their lack of oil.
• The Israeli economy is built around commercial farming for economic gains.
• The Israelis specialize in technology and trade for what they need.