SW Asia Economy Review

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

• Israeli businesses use little oil to operate

• Israel has little industry due to their lack of oil

• The Israeli economy is built around large-scale farming

• The Israeli economy depends on technology rather than natural resources, such as oil

How has the Saudi government used its national wealth to change the country?

• All Saudi citizens are given an equal share of the national wealth

• All Saudi citizens are given an equal share of the national wealth

• A majority of the national wealth has been given to religious organizations in the country

• The government has paid for improvements in transportation, education, health care, and agriculture

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 a country’s GDP

• Most workers want to keep their jobs and do not care about GDP

• GDP is only affected if workers pay for the investment out of their own pockets

• GDP may go down because poorly trained workers will not be able to do their jobs as well

What are capital goods?

• The workers who make the goods and services

• The factories and machines used to make goods

• The money spent to train workers to use new technology

• The goods and services that are produced for a country’s economy

Israel has invested heavily in capital goods in all of the following areas EXCEPT

• oil

• communication

• defense

• farming and agriculture

Why are oil and gas such valuable natural resources?

• Large deposits of oil and gas are found in most countries

• It is easy to replace oil and gas supplies after they are used

• Industrial countries depend on oil and gas in their energy supply

• Oil and gas are the only sources of energy used around the world

What is human capital?

• Skills and education workers have

• money paid to workers for producing goods

• Taxes collected from a country’s workers

• the amount of goods sold in foreign trade in a year

Why have the Israelis made a big investment in human capital?

• Their main industry is the oil industry

• Investing in human capital takes very little money

• They have to bring in workers from other countries

• They need well-trained workers because their economy depends on advanced technology

What is an entrepreneur?

• People who enjoy saving all their money

• Business people who try not to take risks with their money

• Someone who is always successful in whatever he attempts

• Someone who is willing to take a risk to begin a new business

In a traditional economy, how are economic decisions made?

• custom and habit

• consumers and the market

• government planners

• combination of consumers and government planners