Review for Economic Systems of SW Asia CFA

An important organization in Southwest Asia in the Organization of Petroleum Exporting Countries (OPEC). OPEC set oil prices for member nations and controls the of much ofthe world's oil supply this way.

According to the three principal economic quesitons, which statement BESt explains how OPEB markets oil production?

• The citizens in a market economy decide how to produce.

• The government in a market economy decides how to produce.

• The government in a command economy decides what to produce.

• The village elders in a traditional economy decide for whom to produce.

Why are Saudi Arabia and Turkey's economic systems both considered mixed?

• Saudi Arabia and Turkey have some government control over the economy, but individual are also free to make some economic decisions.

• Saudi Arabia and Turkey have some government control over the economy, but they also have traditions they to follow.

• Saudi Arabia and Turkey have different government agencies in control of their economies.

• Saudi Arabia and Turket have a lot of different businesses in the their economies.

How would Country A and Country B differ based on their positions on the economic continuum?

• Country A would have more economic freedom and less government regulation than Country B.

• Country A would have less economic freedom and less government regulation than Country B.

• Country A would have less economic freedom and more government regulation than Country B.

• Country A would have more economic freedom and more government regulation than Country B.

Which statement BEST explains why countries in Southwest Asia have a mixed economy?

• Every economic system has elements of a traditional economy.

• All economic systems are an even blend of command and market.

• Most countries utilize a command market with a few market elements.

• If a government taxes its citizens then there are elements of command in a market economy.

Turkey wants to increase privatization. 

How will Turkey’s economy compare to the economies of Israel and Saudi Arabia if it privatizes more industries?

• Turkey will become more market leaning and more similar to Israel.

• Turkey will become more command leaning and more similar to Israel.

• Turkey will become more market leaning and more similar to Saudi Arabia.

• Turkey will become more command leaning and more similar to Saudi Arabia.

Saudi Arabia is a mostly desert nation while Turkey has more land suitable for agriculture and a larger population.

Why is the gross domestic product (GDP) of Saudi Arabia higher than the GDP of Turkey?

• Turkey’s larger population makes it harder for Turkey to create enough jobs for all its people.

• Large agricultural populations make less money than those whose economies are not based in agriculture.

• Saudi Arabia possesses an abundance of oil deposits valuable enough to allow it to specialize while Turkey cannot afford to specialize.

• Saudi Arabia’s limited number of habitable locations makes its economy easier to effectively regulate than Turkey’s more widespread economy.

What is the primary function of the Organization of Petroleum Exporting Countries (OPEC)?

• OPEC regulates the supply and price of the oil exported to countries.

• OPEC lowers the price of oil when the world production goes down.

• OPEC ensures that oil prices will remain steady and oil will be available for export.

• OPEC works with the United States to make sure oil prices are fair for all countries involved in international trade.

You are a small business owner who sells advanced irrigation systems. Your government has chosen you to sell this product to farmers around the world. You agree to sell your irrigation systems because they are easy to produce due to rules made by your government and you earn a high profit. You decide on the prices for your irrigation systems based on the following factors:

• How many irrigation systems you have already produced.

• How many irrigation systems you expect to sell each week.

• Your country's investment in capital goods to lower your production costs.

• What conclusion is BEST supported by the information in the passage?

• You are a citizen of a country with a mixed economic system.

• You are a citizen of a country with a market economic system.

• You are a citizen of a country with a command economic system.

• You are a citizen of a country with a traditional economic system. 

Which factor drives production decisions in market economies?

• social goals

• local customs

• consumer demand

• government regulation

Saudi Arabia's economy depends heavily on which resource?

• cotton

• iron

• oil

• timber