SW Asia Economic Standards SS7E5-SS7E6

In 1949, which two nations began the talks that resulted in the creation of the Organization of Petroleum Exporting Countries?

• Kuwait and Iran

• Iran and Venezuela

• Saudi Arabia and Kuwait

• Venezuela and Saudi Arabia

A monetary exchange system is necessary for international trade because it

• allows goods to be traded between nations with different currencies.

• eliminates the need for tariffs and trade regulations.

• ensures that all countries use the same currency.

• facilitates the movement of labor across borders.

How do embargoes differ from other trade barriers such as quotas and tariffs?

• Embargoes allow limited trade with specific countries.

• Embargoes cause an end to all trade across a range of goods.

• Embargoes impose a tax on imported goods.

• Embargoes set a maximum limit on the quantity of goods that can be imported.

In 1960, Iran, Iraq, Kuwait, and Saudi Arabia joined Venezuela to form the Organization of the Petroleum Exporting Countries (OPEC). How did forming this organization allow those four Southwest Asian countries to gain billions of dollars to modernize their economies?

• By increasing oil production without restrictions.

• By controlling supplies, OPEC nations were able to set the prices for oil.

• By forming alliances with other countries to sell oil at higher rates.

• By investing in renewable energy sources instead of oil.

Based on this information, which country has a higher standard of living and why?

• Country A likely has a higher standard of living because it has a higher literacy rate.

• Country B has a higher standard of living due to its advanced technology.

• Country C has a higher standard of living because of its rich natural resources.

• Country D has a higher standard of living because it has a lower population density.

Regional conflicts in Southwest Asia, where many Organization of Petroleum Exporting Countries members are located, generally result in which of the following?

• an increase in oil prices

• a decrease in oil production

• stabilization of oil prices

• a rise in renewable energy investments

In Abdul’s country the government makes most of the economic decisions and consumer choice and entrepreneurship is limited. The economic system in Abdul’s country is most likely

• market

• mixed

• command

• traditional

Which nation is the world's largest exporter of petroleum?

• Saudi Arabia

• Russia

• Iraq

• United States

Why are the GDPs of Iran and Saudi Arabia higher than the other listed countries?

• Because these nations control valuable natural resources

• Because they have a larger population

• Because they have more advanced technology

• Because they receive more foreign aid

Which of the following BEST describes a quota?
a ban placed on all trade with a particular
country,
a tax placed on goods imported from a country,
a tax on export goods paid to the exporting
government,
a limit on the amount of goods that can be
imported from a country

• a ban placed on all trade with a particular country

• a tax placed on goods imported from a country

• a tax on export goods paid to the exporting government

• a limit on the amount of goods that can be imported from a country