Economy of Middle Eastern countries

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

• They are all mixed economies.

• They are all command economies.

• They are all poor economies.

• They are all market economies.

What would be the best title for the above chart?

• The economy of Yemen

• The economy of Saudi Arabia

• The economy of Israel

• The economy of Turkey

How would a country invest in human capital?

• Build more roads and bridges

• Mine more diamonds and coal

• Encourage business to use better tools and technology

• Educating and training the citizens

Why is it necessary for countries to have an exchange rate?

• Trade between nations is expensive; an exchange rate lowers the costs involved.

• The dollar is highly valuable throughout the world; every country wants to trade with the U.S.

• There are many currencies in the world; an exchange rate makes trade possible.

• Money is a universal form of payment; there is no need for an exchange rate.

Which statement describes the potential trading relationship between Saudi Arabia

and Israel?

• Since they both specialize, they do not make good trading partners

• Because they specialize in different goods, they could make good trading partners

• They do not use the same currency, therefore, they cannot trade

• Petroleum is always worth more than Israel’s exports so they should not trade

What is the purpose of tariffs?

• They encourage consumers to buy imported products.

• They encourage consumers to buy domestic products.

• They encourage increased trade between nations.

• They cut the cost of goods and services.

Most of the oil in the Middle East is found in nations that

• border the Red Sea.

• have access to the Suez Canal.

• are not Saudi Arabia.

• surround the Persian Gulf.

Why is the Organization of Petroleum Exporting Countries (OPEC) powerful?

• OPEC opposes embargoes.

• OPEC decides the supply of much of the oil on the world market

• OPEC has the most powerful military on earth.

• OPEC is a very strong supporter of Israel.

Which country's economy would be LEAST effected by a drop in demand for oil?

• Saudi Arabia

• USA

• Israel

• Iran

What does OPEC stand for?

• Organization of People Exporting Countries

• Octet of Petroleum Exporting Companies

• Organization of Petroleum Exploding Countries

• Organization of Petroleum Exporting Countries