SW Asia Is, Tur, & SA/Cur. Ex. & Sp. Prac. Qz (SS7E4c/SS7E5a,c)

Which of the following nations have economies that are very similar in how the economy is controlled, what products are produced, and how is it described?

• Israel and Saudi Arabia

• Turkey and Israel

• Saudi Arabia and Turkey

• turkey, Israel, and Saudi Arabia

Answer explanation

Turkey and Israel have economies that are both characterized by a mix of state control and market-driven elements, producing similar products like technology and agriculture, making their economic structures comparable.

For many years in the nation of Israel, economic activity was controlled through government programs, however, today most economic activity is controlled through privately owned businesses. Where does this place Israel on a continuum between market and command?

• more command than market

• neither command nor market

• more market than command

Answer explanation

Israel's shift from government-controlled to privately owned businesses indicates a transition towards a market economy. Therefore, it is more market than command on the continuum.

Focusing on a narrow range of products/services that can be produced most efficiently and cost-effectively.

• subsistence

• specialization

• scarcity

• bartering

Answer explanation

The correct answer is specialization, which refers to focusing on a narrow range of products or services to produce them more efficiently and cost-effectively, maximizing productivity and minimizing costs.

How does economic specialization encourage international trade?

• by producing goods which provide the most profit through high tariffs

• by allowing nations to increase quotas on exported goods

• by producing and selling goods that other countries need at a lower price

• by allowing nations an opportunity to invest in capital

Answer explanation

Economic specialization allows countries to focus on producing goods they can make efficiently and at lower costs. This leads to lower prices for goods that other countries need, thus encouraging international trade.

Since the 1980s, Saudi Arabia has made significant efforts to attempt to have more privately owned businesses. This shows that Saudi Arabia's economy has attempted to move toward which economic system?

• market

• command

• communist

• traditional

Answer explanation

Saudi Arabia's push for more privately owned businesses indicates a shift towards a market economy, where private enterprise plays a significant role, contrasting with command or traditional systems that rely on government control.

The nation of Saudi Arabia has an oil based economy with strong government controls over key economic activities. In the past twenty years, the Saudi government has encouraged the development of private business, but government restrictions have limited this from happening. Where does this place Saudi Arabia on a continuum between market and command?

• more command than market

• neither command nor market

• more market than command

• both market and command

Answer explanation

Saudi Arabia's economy is primarily oil-based with strong government controls, indicating limited market freedom. Although private business development is encouraged, government restrictions prevail, placing it more towards command than market.

The nation of Turkey has an economy that has moved from one with strong government controls to one where individuals make most of the economic decisions. Where does this policy place Turkey on a continuum between market and command?

• more command than market

• neither command nor market

• more market than command

• both market and command

Answer explanation

Turkey's shift from strong government controls to individual economic decision-making indicates a movement towards a market economy. Therefore, it is more market than command on the continuum.

Why is a system of currency exchange needed for international trade?

• all nations use the same currency

• currency exchange makes if more difficult to trade with other nations

• not all nations use the same currency

• all currency has the same value

Answer explanation

A system of currency exchange is necessary because not all nations use the same currency. This allows for trade between countries with different currencies, facilitating international commerce.

Which of the following is a common feature of traditional economies?

• High levels of industrialization

• Reliance on customs and traditions

• Strong central government planning

• Advanced technological infrastructure

Answer explanation

Traditional economies are characterized by reliance on customs and traditions for production and distribution, rather than industrialization, government planning, or advanced technology.

Which of the following focuses on the production of petroleum and petroleum-based products?

• Israel

• Saudi Arabia

• Turkey

• Israel and Turkey

Answer explanation

Saudi Arabia is a leading producer of petroleum and petroleum-based products, significantly contributing to the global oil market, unlike Israel and Turkey, which have less focus on oil production.