Middle East Economic Quiz Review

What is ‘specialization’?

• Producing all goods that the country needs so that trade with other countries isn’t necessary

• Trying to avoid investing in capital goods because it’s too expensive

• Producing goods a country can make most easily so that they can trade for goods that they can’t produce locally

• Directly trading goods with another country without having to use money

Why is specialization so valuable to international trade today?

• Most countries only make one product really well.

• Specialization allows people to do a more efficient 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:

• Olives and grapes

• Oil and natural gas

• Livestock

• Olives

Why has Israel specialized in the area of technology?

• It has few natural resources and little farmland.

• It has a poorly educated population.

• The money earned is used to support the military.

• The country has little in the way of fishing.

Why was OPEC created?

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

• To regulate the supply and price of oil

• To keep non-members from producing any oil

• To help Palestinian Arabs with problems with Israeli Jews

Where are most OPEC countries located?

• Africa

• North America

• Southern and Eastern Asia

• Southwest Asia

Tariffs and quotas are alike because they both __________________.

• restrict or limit trade between countries

• completely stop trade between countries.

• increase trade between countries.

• make trading a lot easier between countries

In 1973, Southwest Asian countries stopped exporting oil to the United States in protest against the US’ support of Israel. What type of trade barrier is this?

• mountain

• tariff

• quota

• embargo

What happens to the price of oil when OPEC countries decide to reduce production?

• Oil prices decrease

• Oil prices increase

• Oil prices stay the same

• Oil becomes free to OPEC members

If Saudi Arabia’s government puts a limit on how much Israeli Dead Sea salt it will import this year, what trade barrier is this?

• Embargo

• Tariff

• Quota

• Opportunity Cost