Unit 4: Economics of SW Asia Review

Which of the following is NOT true?

• Countries with a lot of oil tend to have a higher standard of living

• countries with a lot of oil tend to have higher GDP per capita

• countries with a lot of oil tend to have fewer instances of hunger and poverty.

• countries with a lot of oil tend to have fewer environmental issues.

Which of the following is likely the best way to increase the standard of living in a country?

• invest in education

• invest in capital goods

• specialize in a certain product

• All of the above

OPEC stands for:

• Organization of Petroleum Exceptional Countries

• Organization of Petroleum Exporting Countries

• Organization of People Eating Chips

• None of the Above

The purpose of OPEC is to:

• Control oil supplies and set oil prices

• Create an oil surplus and export oil

• Lowering demand for oil and set oil prices

Tariff is a:

• limit on the amount of goods imported

• complete ban on trading with another country

• tax placed on imported goods

How does a tariff protect a country's businesses?

• lowering production cost and increasing access to resources

• preventing foreign good from entering into a country

• eliminating government regulations on goods

• making foreign goods more expensive for consumers, encouraging to buy local

What is an embargo?

• complete ban on trade with a country

• limit on goods imported into a country

• tax on imported goods

Where does Saudi Arabia get most of its revenue from?

• the textile industry

• the tourism industry

• the petroleum industry

• the agricultural industry

What percentage of Saudi Arabia's annual budget is paid for by oil revenue?

• less than 25%

• between 25%-50%

• between 50%-70%

• more than 75%

What country is the largest exporter of petroleum?

• Iran

• Turkey

• Saudi Arabia

• United States