Middle East Government/Economies Unit

In a command economy, how is it determined what goods and services will be produced?

• Businesses decide what to produce on the basis of market conditions.
• Consumers decide through their behavior in the marketplace.
• Government decides what will be produced.
• Supply and demand control production and price.

As one of the factors of productive resources, capital goods can be defined as

• the goods and services a business produces.
• the supply of labor needed to produce goods.
• the people that purchase goods and services.
• the equipment and factories needed to produce goods.

If OPEC decided to cut oil production for the coming year, what would be the MOST LIKELY effect?

• prices would not change
• prices would go up
• prices would go down

Which statement BEST reflects the difference between tariffs and quotas?

• Tariffs set limits on imports, while quotas raise prices on exports.
• Tariffs raise prices on exports, while quotas set limits on exports.
• Tariffs raise prices on imports, while quotas set limits on imports.

An exchange rate is used to

• determine the price of one country's imports in terms of another country's imports.
• determine the price of one country's GDP in terms of another country's GDP.
• determine the price of one country's currency in terms of another country's currency.

Tariffs, quotas, and embargoes are examples of

• free trade
• trade barriers
• trade incentives

Communism and socialism are usually found in what type of economic system?

• command
• traditional
• market
• mixed

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

• Entrepreneurs
• Custom
• Government
• Producers

Which of these terms is the BEST synonym for the word "entrepreneur"?

• home owner
• business owner
• employee
• student

Which nation leads the Middle East region in the production and export of oil?

• Iran
• Iraq
• Kuwait
• Saudi Arabia