SWA ECON STUDY GUIDE

A traditional economy is based on what?

• short term trading relationships with other countries

• long- standing customs and values

• dictated by the government

• chosen by the people and their needs and wants

A command economy is based on what?

• cultures and values

• dictated by government controls and regulations

• control of the citizens

• king and queen demands

Mixed economies fall somewhere in between pure command and pure market on the continuum? True or False

• True

• False

Which country has the largest mixed economy in the Middle East?

• Saudi Arabia

• Iran

• Turkey

• Israel

What are the 3 questions countries need to ask in when setting up their economic system up?

• what to produce, where to produce, how to produce

• what to produce, who is going to produce it, how to produce

• what kind of producing, where to produce, how to produce

• what to produce, how to produce, for whom to produce

What does standard of living mean?

• how to live where you are living

• different levels of living for different people

• standards of how everyone should live in countries

• levels of wealth and material comfort available in a country

Entrepreneurs

• Factories, machines, and technology that people use to make products to sell. 
• Creative, original thinkers who are willing to take risks to create a new businesses and products. 
• Organization of Petroleum Exporting Countries founded to set oil prices and policies. 
• A system of changing from one type of currency to another. 

Specialization

• A limit on the amount of foreign goods that can come into a country. 
• Anything that slows downs or prevents one country from exchanging goods with another. 
• A tax placed on goods when they are brought into one country from another country. 
• Products a country makes best that are demand on the world market. 

Mixed Economy

•  A government planning group makes most of the economic decisions for the people. 
• Based on customs and on the habits of how decision were made in the past. 
• Economic decision are made by individuals who decide what to produce and what to buy. 
• Has characteristics of both a market and command economy. 

Quota

• A limit on the amount of foreign goods that can come into a country. 
• Anything that slows downs or prevents one country from exchanging goods with another. 
• A tax placed on goods when they are brought into one country from another country. 
• Products a country makes best that are demand on the world market.