SW Asia Economics Quiz Practice

The objective of the Organization of Petroleum Exporting countries (OPEC) is to affect the price of oil by controlling

• Inflation

• Taxes

• Production

• Deflation

For international trade it is essential that countries....

• develop a system for exchanging currencies between nations.

• avoid each other so they do not go to war.

• do their best to trade as much as possible.

• make treaties with each other.

The three basic questions that all economic systems answer are:

• What should be produced? Why it should be produced? When is it produced?

• Who produces it? Where is it produced? Why is something produced?

• How to produce something? When to produce something? Why do we produce it?

• What to produce? How to produce? For whom to produce?

Which of the following has a direct relationship on the standard of living of a country

• The literacy rate of a country

• The amount of oil a country has

• How much forest a country has

• How big a country is

What is economic specialization

• the ability for a country to get rich fast

• how the economy grows

• producing goods a country can make most efficiently so that it can trade them for goods it cannot produce efficiently

• creating an economy with lots of different goods

Throughout much of Israel's history there have been wars; as a result, which industry does Israel have to invest into the most?

• Military Security

• Farming

• Shipping

• Oil

What type of economies do Israel, Saudi Arabia, Turkey and Iran have?

• Traditional

• Market

• Mixed

• Command

Something happens because of the direct result of specialization, what is it?

• Specialization doesn't do anything for the economy.

• Countries that specialize, naturally want to increase trade with other countries.

• The economy begins to grow very fast but then stops suddenly.

• The economy starts to shrink.

Which economic system and description are correctly paired?

• Command-People have the freedom to open up private businesses

• Mixed-People farm and hunt

• Traditional- The government controls everything

• Market - economic decisions are made by buyers and sellers

Over the course of her modern history, Israel has invested heavily in capital goods in all of the following areas EXCEPT

• Agriculture

• Military

• Petroleum (Oil)

• Technology