Unit 3 SWA Government/Economics Pretest

Which group has been an example for successfully determining the amount and price of a world-wide commodity?

• The European Union

• World Trade Organization

• North Atlantic Treaty Organization

• Organization of Petroleum Exporting Countries

Land, labor, capital, and entrepreneurship are

• the basis of employment.

• the results of production.

• factors of production.

• results of supply and demand.

As one of the factors of production/productive resources, capital 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.

In a command economy, how are the prices of goods and services determined?

• business owners

• the central government

• market forces of supply and demand

• independent agencies and independent regulators

Countries with a low standard of living, little industrial output, and a low Gross Domestic Product are referred to as

• command economies.

• developed countries.

• developing countries.

• plantation economies.

Which statement BEST reflects the difference between tariffs and quotas?

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

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

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

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

Tariffs, quotas, and subsidies are examples of

• free trade.

• trade barriers.

• trade incentives.

• restrictive licenses.

Because they are located downstream from Turkey on the Tigris and Euphrates rivers, these two nations are anticipating a reduction in water supply, as a result of 22 dams being built by the Southeastern Anatolia Project. The two nations are

• Iraq and Iran.

• Iraq and Syria.

• Iran and Syria.

• Saudi Arabia and Yemen.

In light of the given facts, it is MOST LIKELY that: 1. The Middle East has 1% of the world's fresh water supply, and it is shared by 5% of the world's population. 2. All major rivers in the Middle East cross at least one national border. 3. By the year 2025 Middle Eastern nations will require more than double the fresh water naturally available to them.

• Middle Eastern countries will be forced to import water from other nations.

• The Arab nations of the Middle East will form an alliance to force control of water from Israel.

• Unequal access to water will surpass access to oil as the major source of conflict in the region.

• Middle Eastern nations will be forced by the United Nations to cooperate and find solutions to water access issues.

Which nation's government is classified as a monarchy, with a king as chief of state and head of government?

• Iran

• Iraq

• Israel

• Saudi Arabia