Economics of SW Asia (Middle East)

What do the economies of Israel, Saudi Arabia, and Turkey have in common?

• They are all mixed economies

• They are all closer to the Command side of the continuum.

• They are all dependent on oil revenue

• They are all members of OPEC.

A quota is:

• the refusal to cooperate with other countries in a specific region

• a limit on trade

• a tax placed on imports

• a limit on imports from other nations

Pure Command --------------------S.A.---I---------Pure Market

Why does (I) have more of a market economy than (S.A.)?

• In Israel, religious authorities mainly determine what goods are produced.

• In Israel, tradition mainly determines what goods are produced.

• In Israel, the government makes more business decisions.

• In Israel, individual citizens make more business decisions.

Saudi Arabia and Iran have become very rich over the last fifty years due to their supply of which natural resource?

• gold

• oil

• lumber

• diamonds

Who makes ALL economic decisions in a command economy?

• the leaders of the religious community

• representatives of the national court system

• individual citizens

• government

Which of these must be present for international trade to be successful?

• a system for securing borders

• a system for imposing protective tarrifs

• a system for exchanging currencies

• a system for raising taxes

Many oil rich countries cooperate with each other in the Organization of Petroleum Exporting Countries (OPEC). How does this help these countries play a major role in world affairs?

• They share a common form of government.

• They maintain a military force in the Middle East.

• They share a common language and history.

• They influence the price of oil on the world market.

Over the past 35 years, the U.S. has severly limited its trade with Iran. Which type of trade barrier does this describe?

• a quota

• a subsidy

• a tariff

• an embargo

Who answers ALL the economic questions in a market economy?

• individual citizens

• religious leaders

• leaders of the banking community

• the government

What is human capital?

• money spent on education and training

• government-owned business

• factories and machinery

• the total agriculture produced by a nation in one year