Economics of Southwest Asia Test

Which would be a problem for a community with a traditional economy?

• A. People in the village find ways to make their products more efficiently.

• B. The price of advanced electronics, like computers, begins to rise rapidly.

• C. People in the country begin to want and need products that cannot be made or traded locally.

• D. Older villages take on younger workers to learn to make the products they have been producing.

In a command economy, how are economic decisions made?

• customs and traditions

• the government

• consumers

• combination of consumers and the government

Who takes on the financial risk in starting a new business in a mixed economy?

• consumers

• the government

• individual business people (entrepreneurs)

• combination of government planners and individual investors

Why do most economies in the world today operate somewhere in between a market economy and a command economy?

• Most consumers want government control of the economy.

• Government control makes a market economy more profitable.

• Government control of some aspects of the economy has never been successful in the modern world.

• Most economies have found they need a mix of free market and some government control to be successful and protect consumers.

What type of economy do Israel, Saudi Arabia, and Turkey have?

• mixed

• traditional

• command

• market

Which statement about Saudi Arabia’s economy is TRUE?

• Saudi Arabia is the world’s 3rd largest oil producer.

• Most of the oil production is controlled by the government.

• The country’s oil industry is based completely on capitalism.

• Only native Saudis are allowed to work in the country’s oil fields.

How have the Israelis made up for their lack of natural resources?

• They have put everyone to work and have no unemployment.

• They have relied primarily on farming to keep their economy going.

• They have developed strong technology companies in their economy.

• Israelis have refused to import oil, saving huge amounts of money each year.

What is “economic specialization”?

• swapping goods from one country to another without having to use money

• trying to avoid investing in industry and technology

• producing all goods and services needed for a country’s growth

• producing those goods a country can make most efficiently so they can trade them for goods made by others that cannot be produced locally

Which of the following would be an example of an entrepreneur contributing to economic development?

• Mira overcomes discrimination against women in her country and wins a set in Parliament.

• Abdul opens a small shop, eventually builds it into a huge store, and hires thirty employees.

• Farouqi leads farmers in a successful movement to win agricultural reforms from their government.

• Mohammed gets a job with a foreign business. He works hard and eventually becomes president of the company.

In October of 1973, OPEC—the Organization of Petroleum Exporting Countries—joined together and refused to allow the United States to purchase oil from its member countries.  As a result, by Spring of 1974, oil prices had roughly tripled in the United States.

What international trade situation is being described here?

• tariff

• quota

• embargo

• mountain