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

How are economic decisions made in a traditional economy?

• Government planners

• Consumers

• Customs and beliefs

• A mix of consumers and government leaders

If a country has not built new factories or used new technology in many years, then the country is not investing in what?

• opportunity costs

• natural resources

• human capital

• physical or capital goods

One of the biggest problems with state-run oil industries is:

• poor organization and inefficiency

• Few remaining oil deposits

• No labor force

• Lack of a market for oil

What do you call a person who takes risks by starting a new business?

• An international trader

• An economist

• An entrepreneur

• A dictator