SWA Econ Review

How do market economies compare to command economies?

• 1. Market economies are more efficient than command economies.

• 1. Market economies are more regulated than command economies.

• 1. Market economies rely more on central planning than command economies.

• 1. Market economies strict consumer choices more than command economies.

How do command economies prioritize the interests of people, the government, consumers, and private businesses involved in the economy?

• The interests of the people are prioritized over the interests of the government.

• 1. The interests of the government are prioritized over the interests of the people.

• The interests of consumers are prioritized over the interests of private businesses.

• The interests of private businesses are prioritized over the interest of consumers.

Use the continuum to answer the question.

Where would MOST Southwest Asian nations be placed on the continuum?

• 1. near point I

• 1. between points I and II

• 1. between points II and III

• 1. near point IV

What factor or factors direct economic activity in mixed economies?

• 1. the changes in the market

• 1. decisions made by government leaders

• 1. the need to function without the use of currency

• 1. influence from both the public and private sectors

Which of the following would make the Saudi Arabian economy more like the Israeli economy?

• 1. introducing a minimum wage

• 1. expanding the private sector

• 1. specializing more heavily in oil production

• increasing state control of major industries

Use the continuum to answer the question.

Where do Israel, Saudi Arabia, and Turkey fall on the economic continuum?

• I: Saudi Arabia; II: Turkey; III: Israel

• I: Turkey; II: Israel; III: Saudi Arabia

• I: Israel; II: Turkey; III: Saudi Arabia

• 1. I: Israel; II: Saudi Arabia; III: Turkey

Use the information to answer the question.

What allows this type of transaction to take place?

• Member states of OPEC use the same currency, which allows members of the organization to easily engage in trade.

• 1. There is a system for exchanging currencies between the two nations that allows them to engage in trade.

• All countries in Southwest Asia use the same currency, which allows nations in the region to easily engage in trade.

• 1. There is a system of tariffs and quotas in the two countries that allows them to engage in trade.

Were there no exchange rate system in place, what complications would arise if a Saudi Arabian company sold a product to consumers in the United States?

• The company would have to pay a higher import tariff.

• Consumers in the United States only use the United States dollar.

• 1. Consumers would have difficulty determining the cost of the product.

• Domestic competition in Saudi Arabia would drive up the product’s price.

Use the excerpt from the Statute of the Organization of Petroleum Exporting Countries (OPEC) to answer the question.

Based on the excerpt, what is the overall goal of OPEC?

• 1. to raise the price of crude oil

• 1. to increase the amount of oil produced

• to increase control over the global oil supply

• 1. to reduce global dependence on oil for energy

How does the Organization of the Petroleum Exporting Countries (OPEC) achieve its goal of stabilizing the worldwide price for oil?

• by setting member production quotas to lower the overall supply of oil

• by arranging exclusive contracts with private and nationalized oil companies

• by purchasing most of the oil available on the market from nonmembers

• 1. by using its vote on the United Nations Security Council to set acceptable prices