SW Asia Econimic Systems

In a traditional economy, the decision to make (or not to make) certain products is decided MOSTLY by...

• custom

• entrepreneurs

• government

• producers

In this type of economic system, the production of goods and services is controlled solely by the concept of supply and demand, businesses are operated for profit, and the government is not involved.

• command

• communism

• market

• mixed

In the Kingdom of Saudi Arabia the government controls every aspect of oil production which makes up the majority of the country's economy. While other businesses are owned by individuals, the biggest segment of Saudi Arabia's economy is oil production. Saudi Arabia would best be described as:

• entirely Market

• almost entirely Command

• a mixture between just Market and Traditional

• a Mixed economy with large amounts of Command

In Saudi Arabia, roughly 95% of the country's oil production is controlled by the government. This would suggest that most of Saudia Arabia is a ___ economy.

• market

• command

• traditional

• free market

Which statement about Saudi Arabia's economy is TRUE?

• Saudia Arabia is the world's 3rd largest oil producer.

• Most of the oil production is controlled by the government.

• The country's oil industry is based completely on capitalism.

• Only native Saudi's are allowed to work in the country's oil fields.

Over 95% of the oil in Saudi Arabia is controlled by the government. This element of Saudi Arabia's economy shows that the oil industry is most likely which economic system?

• mixed

• market

• command

• traditional

Since the early 1980s, Turkey has made significant strides in moving away from government run business and toward privately run businesses. This shows that Turkey's economy has made a move in which direction?

• from market to command

• from command to market

• from traditional to command

• from market to traditional

Choose all the statements that describe similarities between the economics of Isreal, Saudi Arabia, and Turkey.

• All three nations have mixed economies.

• The economies of all three are dependent on oil.

• Petroleum is a big factor in each of the economies.

• The government has some involvement in the economies of all threee.

In capitalist economies, prices are ...

• usually unfair

• set by the central government

• used to ensure social equality

• determined by supply and demand