Unit 5 Test Review

Compared to Saudi Arabia, how does the economy of Turkey differ?

• a larger dependence on petroleum revenue

• less government regulation and intervention

• a smaller dependence on agricultural revenue

• more government regulation and intervention

In Israel, the government has some control over the economy; but private businesses have lots of freedom. What type of economy does Israel have?

• Pure Command

• Pure Market

• Mixed toward Market

• Traditional

Use the continuum to answer the question. Where would MOST Southwest Asian nations be placed on the continuum?

• near point I

• between points I and II

• between points II and III

• near point IV

Which of the following BEST compares the economies of Israel, Saudi Arabia, and Turkey?

• Saudi Arabia has a larger private sector than Turkey and Israel.

• Turkey is more technologically advanced than Israel and Saudi Arabia.

• Turkey is more reliant on the production of oil than Saudi Arabia and Israel.

• Israel has fewer obstacles to starting a business than Turkey and Saudi Arabia.

Use the description to answer the question:

John is moving to Southwest Asia to expand his business. He wants to live in a country with free markets, chances for economic development and little interaction with the government. Which of the following countries should John live in?

• Saudi Arabia

• Turkey

• Iran

• Israel

Use the continuum to answer the following 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

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

Use the information to answer the question.:

Saudi Arabia has a large amount of oil. The petroleum sector makes up over 90 percent of the country’s gross domestic product. The country sells oil to other countries and purchases the goods people need. What is this an example of?

• entrepreneurship

• specialization

• quotas

• tariffs

Why does specialization encourage voluntary trade?

• Countries produce all the goods that they need, so they do not trade.

• Countries produce what they make best, and they trade to meet their needs.

• Countries trade with other countries that make the same products they produce.

• Countries trade only natural resources, and they buy only finished products.

Use the information to answer the question:

In October of 1973, OPEC nations joined together and refused to allow the United States to purchase oil from its member countries. As a result, by the Spring of 1974, oil prices had roughly tripled in the United States. What international trade situation is being described?

• a tariff

• a quota

• a subsidy

• an embargo

Use the information to answer the question:

Iraq and Saudi Arabia are both Southwest Asian countries and members of the Organization of the Petroleum Exporting Countries (OPEC). Oil production in Iraq has slowed due to conflicts in the country and Iraq has been forced to purchase oil from Saudi Arabia. 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.

• 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.

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