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WorksheetsSW Asia Economy Quiz
Total questions: 35
Worksheet time: 1hrs 7mins
Name
Class
Date
1.
Under which economic system does the government make almost all of the economic decisions?
a)
Command (Public)
b)
Market (Private)
c)
Traditional (Custom)
d)
Capitalist (Laws of Supply and Demand)
2.
In a market economy, who makes the economic decisions?
a)
subsistence farmers (grow just enough to feed family)
b)
custom and habit (do what ancestors did)
c)
government planners (public control)
d)
people (productions based on supply and demand)
3.
The economies of Israel, Saudi Arabia, Turkey, and Iran could be best described as
a)
Traditional
b)
Pure Market
c)
Mixed Command
d)
Mixed Market
4.
Where are most of the countries of OPEC located?
a)
Africa
b)
South America
c)
North America
d)
Southwest Asia
5.
Which industry does Saudi Arabia's government specialize in?
a)
Oil
b)
technology
c)
agriculture
d)
textile manufacturing
6.
Why have the Israelis made a big investment in human capital?
a)
They need capital tools to extract the abundance of oil profits.
b)
Investing in human capital will decrease the standard of living an overall quality of life.
c)
They have to bring in workers (labor) from other countries.
d)
They need well trained workers because their economy is diversified with advanced technology.
7.
Why was OPEC created?
a)
To regulate the supply and price of oil
b)
To help the Palestinians in their problems with Israel
c)
To design new machinery to get oil out of the ground
d)
To keep countries that are not members from producing any oil
8.
A tax placed on goods coming into a country from another country is known as
a)
A tariff
b)
A quota
c)
An embargo
d)
A natural trade barrier
9.
How has Israel's lack of oil affected that country's economy?
a)
Israeli businesses use little oil to operate.
b)
Israel has little industry dues to their lack of oil.
c)
The Israeli economy is built around commercial farming for economic gains.
d)
The Israelis specialize in technology and trade for what they need.
10.
If a country does not invest in its human capital, how can it affect the country's gross domestic product (GDP)?
a)
Investment in human capital has little effect on the GDP.
b)
Most workers want to keep their jobs and do not care about the GDP.
c)
GDP is only affected if workers pay for the investment out of their own pocket.
d)
GDP may go down because poorly trained workers will not be able to do their jobs well.
11.
Why are entrepreneurs (someone who starts business or new product) important?
a)
They can increase the country's unemployment rate.
b)
They are an economic system that hampers the privitization of businesses.
c)
They are a factor of production that helps to grow the economy.
d)
They can make their own economic decisions about capital tools for production.
12.
What are capital goods?
a)
The workers who make the goods and services.
b)
The factories and machines used to make goods.
c)
The money spent to train workers to use new technology.
d)
The goods and services that are produced for a country's economy.
13.
A limit to the number or amount of a foreign produced good that is allowed into the country is known as
a)
A tariff
b)
A quota
c)
An embargo
d)
A natural trade barrier
14.
A formal halt to trade with a particular country for economic and political reasons is known as
a)
Tariff
b)
Quota
c)
Embargo
d)
Natural Barrier
15.
What is GDP?
a)
The value of goods and services a country imports.
b)
The value of all goods and services produced in a period of time.
c)
Trade Barriers countries place on each other.
d)
People who take risks on new businesses.
16.
According to the normal relationship, if Iran decided to invest money in education and training, how would their GDP likely be affected?
a)
It would decrease
b)
It would not change.
c)
It would increase.
d)
It would flucuate.
17.
Which term is necessary for international trade?
a)
embargo
b)
interdependence
c)
currency exchange
d)
human capital
18.
An economic exchange in which all sides agree to participate because they expect to benefit.
a)
International Trade
b)
Voluntary Trade
c)
Economy
d)
Trade barrier
19.
Who is a person who takes a risk to start a business?
a)
Entrepreneur
b)
Human Resources
c)
GDP
d)
Services
20.
Businesses make economic decisions, but the government regulates them to make sure they're safe/fair.
a)
Mixed
b)
Traditional
c)
Command
d)
Market
21.
An undeveloped economy in which customs and habits from the past determine how decisions will be made; may be found in rural areas with high levels of subsistence farming and rely on barter rather than currency.
a)
Mixed
b)
Traditional
c)
Economy
d)
Market
22.
What are tangible objects that satisfy economic wants and needs?
a)
Services
b)
Labor
c)
Invest
d)
Goods
23.
In this economy, the government produces its signature brand of shoe-flavored chips and determines that it will be sold in all stores for $1.25 per bag. Which type of economy is this?
a)
Traditional Economy
b)
Market Economy
c)
Mixed Economy
d)
Command Economy
24.
Why do countries need a system for exchanging currencies?
a)
To assist economic growth
b)
To encourage business loans
c)
To conduct international trade
d)
To support commercial treaties
25.
Why do most economies in the world today operate somewhere in between a market economy and a command economy?
a)
Most consumers want government control of the economy.
b)
Government control makes a market economy more profitable.
c)
Government control of some aspects of the economy has never been successful in the modern world.
d)
Most economies have found they need a mix of free market and some government control to be successful and protect consumers.
26.
What is "economic specialization"?
a)
directly swapping goods from one country to another without having to use money
b)
trying to avoid investing in industry and technology because of the expense involved
c)
producing all goods and services needed for a country's growth, so that trade with other countries is not needed
d)
producing those goods a country can make most efficiently so they can trade them for goods made by others that cannot be produced locally
27.
This Southwest Asian country's economy is based on agriculture.
a)
Nigeria
b)
Turkey
c)
Afghanistan
d)
Saudi Arabia
28.
Which statement BEST describes the economies of many Southwest countries today?
a)
They are based on agriculture.
b)
They are free market economies.
c)
They are mixed economies.
d)
They are command economies.
29.
This country has the highest literacy rate and thus the greatest number of entrepreneurs.
a)
Iran
b)
Israel
c)
Saudi Arabia
d)
Iraq
30.
Kuwait, Saudi Arabia, and Iran all belong to which international organization?
a)
NATO
b)
OPEC
c)
NAFTA
d)
The EU
31.
What happens to the price of oil when OPEC countries decide to reduce production?
a)
prices rise
b)
prices drop
c)
prices stay the same
d)
oil stops being sold
32.
Sarah is from Israel and wants to buy something from her neighboring country of Turkey. In order to buy the food, she must determine what good will cost her in Lira rather than in Israeli shekels. What do we call this?
a)
interest rate
b)
exchange rate
c)
production rate
d)
literacy rate
33.
During the 1973 Oil Crisis, OPEC nations put a stop on petroleum they would sell and export to the United States. This economic trade barrier caused a rise in oil prices at this time.
a)
export
b)
tariff
c)
embargo
d)
quota
34.
Why would the Saudi oil industry need a large investment in human capital?
a)
the technology is in the oil industry is very complicated
b)
the Saudis have found it hard to make a profit in the oil industry
c)
Most people working in the Saudi oil industry have little or no real training
d)
They hop to have machines take over most of the jobs done by workers now
35.
How do Iran and Saudi Arabia benefit from belonging to the Organization of Petroleum Exporting Countries (OPEC)?
a)
OPEC keeps the price of oil high on the world market
b)
Countries in OPEC are able to share water resources with each other.
c)
The organization sets up tariffs to protect Southwest Asian manufacturing
d)
OPEC makes it possible for Southwest Asian countries to buy oil at low prices.
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