Unit 4 Middle East Economics

Which statement correctly explains the relationship between literacy rates, standard of living, investment in human capital, investment in capital goods, and GDP?

• Countries that spend a larger percentage of their GDP investing in human capital and capital goods experience increases in literacy rate, standard of living, and GDP.

• Countries that spend a smaller percentage of their GDP investing in human capital and capital goods experience increases in literacy rate, standard of living, and GDP

• Countries that spend a larger percentage of their GDP investing in human capital and capital goods experience increases in literacy rate and standard of living and decreases in GDP.

• Countries that spend a larger percentage of their GDP investing in human capital and capital goods experience decreases in literacy rate, standard of living, and GDP

limiting the number of goods allowed to come into a country

• quota

• embargo

• human capital

• tariff

• capital goods

ban on trade with another country

• quota

• embargo

• human capital

• capital goods

• tariff

a tax on goods imported into a country

• quota

• embargo

• human capital

• capital goods

• tariff

education, training, and experience of a workforce

• quota

• embargo

• human capital

• capital goods

• tariff

machinery, technology, and/or infrastructure

• quota

• embargo

• human capital

• capital goods

• tariff

Based on oil production alone, which of the following countries in the graph would likely have the most developed economy?

• Iran

• Iraq

• Saudi Arabia

• Turkey

In general, how does a country's literacy rate impct its standard of living?

• Lower literacy rates produce higher standards of living.

• Higher literacy rates produce lower standards of living

• Literacy rates have little or no impact on standards of living.

• Higher literacy rates produce higher standards of living .

How does specialization make trade between countries more efficient?

• By focusing on what they are good at doing, countries can have more total goods and services.

• By producing all the goods and services needed for its growth, a country will not need to trade with other countries.

• It eliminates trade barriers that countries have put into place to gain economic advantages over other countries

• Specialization has no impact on the types of goods and services a country products for its consumers.

Why is it important for nations to have a system to convert one type of currency to another?

• Converting to different currencies makes goods cost less.

• Converting currencies makes it possible for nations to buy and sell goods with each other.

• Banks are not able to handle different kinds of currencies.

• The dollar is the most valuable currency in the world today