Economics in Southwest Asia

Countries must figure out how to use their scarce resources in the smartest way possible. The questions they must answer are:

• What to produce?

• How to produce?

• Why to produce?

• For whom to produce?

Identify the feature as a command element or a market element: The national government controls the nations resources.

• Command element

• Market Element

Identify the feature as a command element or a market element: Private companies are able to buy mineral rights in the country and set their own prices.

• Command element

• market element

Identify the feature as a command element or a market element: The government cuts tax rates because companies said that would help them compete better.

• command element

• market element

Identify the feature as a command element or a market element: The government increases tax rates because it wants to create and pay for new social programs.

• command element

• market element

Middle East economies have a greater ____________ ____________ than the United States and Europe.

• market element

• command element

• pure market

• literacy rate

Israel is ____ free and ____ command.

• 70%, 30%

• 30%, 70%

• 64%, 36%

• 65%, 35%

Saudi Arabia specializes in the production of:

• oil and cotton

• livestock

• technology

• oil and natural gas

The economies of Israel, Saudi Arabia, Turkey, and Iran can best be described as:

• traditional

• command

• market

• mixed

Why was OPEC created?

• To design new technology for getting oil out of the ground

• To keep non-members from producing any oil

• To regulate the supply and price of oil

• To keep the price of oil and gas high