SW Asia Economy

What are the 3 basic economic questions that all economic systems must answer?

• What to produce, how to produce it, and for whom to produce the goods
• When to produce, why to produce, and how long to produce
• To what extent to produce, how much to produce, why to produce
• What to produce, why to produce, and how much to produce

Which industry does Saudi Arabia's government specialize in?

• Oil
• technology
• agriculture
• textile manufacturing

In a market economy, who makes the economic decisions?

• subsistence farmers (grow just enough to feed family)
• custom and habit (do what ancestors did)
• government planners (public control)
• people (productions based on supply and demand)

If a country does not invest in its human capital, how can it affect the country's gross domestic product (GDP)?

• Investment in human capital has little effect on the GDP.
• Most workers want to keep their jobs and do not care about the GDP.
• GDP is only affected if workers pay for the investment out of their own pocket.
• GDP may go down because poorly trained workers will not be able to do their jobs well.

In this economy, manufacturers of automobiles control the number of vehicles produced each month in an effort to avoid surpluses that would minimize their profits.

• Big Wheels economy
• Market economy
• Command economy
• Traditional economy

In this economy, the government produces its signature brand of shoe-flavored chips and determines that it will be sold in all stores for $1.25 per bag. Which type of economy is this?

• Traditional Economy
• Market Economy
• Mixed Economy
• Command Economy

Which economy is family/agricultural based?

• traditional

• market

• mixed

• command

Which economy is privately owned so everyone can participate?

• traditional

• market

• mixed

• command

Which economy is government owned?

• traditional

• market

• mixed

• command

Which economy is a mix of all 3 other types?

• traditional

• market

• mixed

• command