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Southwest Asia Economy

Total questions: 34

Worksheet time: 22mins

Name
Class
Date
1.

Adolf Dassler was the founder of the German sportswear company Adidas. His brother Rudolf founded Puma. Both of these Germans are examples of which factor of production?

a)

capital goods

b)

human capital

c)

natural resources

d)

entrepreneurship

2.

The United Kingdom has large deposits of coal, petroleum, natural gas, iron ore, lead, zinc, and gold. The country will use these items to create products to sell. Which factor of production is being used to increase the GDP?

a)

capital goods

b)

human capital

c)

natural resources

d)

entrepreneurship

3.

In Country B, the government has offered incentives to companies that invest in improved technology and machinery in their factories. What factor of economic growth is the country working to improve?

a)

capital goods

b)

human capital

c)

natural resources

d)

entrepreneurship

4.

In Country A, the government has offered incentives to companies that invest in continuing education and training for their employees. What factor of economic growth is the country working to improve?

a)

capital goods

b)

human capital

c)

natural resources

d)

entrepreneurship

5.

According to an article in The Moscow Times from 2015, “Russia came first in the world for its rate of primary school completion, 10th for secondary education and 13th for post-secondary education.” This shows that Russia is investing in which factor of production?

a)

capital goods

b)

human capital

c)

natural resources

d)

entrepreneurship

6.

Russia has a high literacy rate (99%), just like United Kingdom and Germany. However, the GDP of Russia is lower than that of United Kingdom and Germany. Which factors of production could Russia invest in to increase their GDP? (you will select more than one)

a)

capital goods

b)

human capital

c)

natural resources

d)

entrepreneurship

7.

People that are willing to take risks and start new businesses or invent new items help to stimulate their countries economies. What factor of production does this represent?

a)

capital goods

b)

human capital

c)

natural resources

d)

entrepreneurship

8.

Who takes a financial risk in starting a new business?

a)

Entrepreneur

b)

Economist

c)

Inventor

d)

Government planner

9.

The number limit on how many items of a particular product can be imported from a particular country is the _______________.

a)

demand

b)

quota

c)

embargo

d)

tariff

10.

Why do most countries in the world today fall somewhere between a market and a command economy?

a)

Some government control has never been successful.

b)

Government control always makes a market economy more profitable.

c)

Most consumers prefer government control to free market.

d)

Most countries have found they need a mix of free market and government control to be successful.

11.

What 3 economic questions are asked when studying the similarities of traditional, command, market, and mixed economies among nations of the world?

a)

What to produce, why to produce, when to produce?

b)

What is your opportunity cost, what economic resources are needed, why should these resources be used?

c)

What to produce, how to produce, and for whom to produce?

d)

What is your opportunity cost, why are economic resources needed, when should these resources be used?

12.

What is ‘specialization’?

a)

Producing all goods that the country needs so that trade with other countries isn’t necessary

b)

Trying to avoid investing in capital goods because it’s too expensive

c)

Producing goods a country can make most easily so that they can trade for goods that they can’t produce locally

d)

Directly trading goods with another country without having to use money

13.

In a command economy, economic decisions are made by the ___________.

a)

consumers

b)

market

c)

government

d)

producers

14.

Saudi Arabia specializes in the production of:

a)

oil and olives

b)

olives and grapes

c)

oil and natural gas

d)

livestock

15.

The economies of Israel, Saudi Arabia, Turkey, and Iran can best be described as:

a)

traditional

b)

command

c)

market

d)

mixed

16.

Why was OPEC created?

a)

To design new technology for getting oil out of the ground

b)

To regulate the supply and price of oil

c)

To keep non-members from producing any oil

d)

To help Palestinian Arabs with problems with Israeli Jews

17.

Where are most OPEC countries located?

a)

Africa

b)

North America

c)

Southern and Eastern Asia

d)

Southwest Asia

18.

After Iraq invaded Kuwait, the United Nations used this trade barrier to stop other countries from trading with Iraq:

a)

mountain

b)

tariff

c)

quota

d)

embargo

19.

The relationship between the literacy rate and standard of living in Southwest Asia is _________.

a)

Literacy rate has no affect on the standard of living.

b)

The higher the literacy rate the higher the standard of living.

c)

The standard of living is independent of literacy rate.

d)

Low literacy rate creates a higher standard of living.

20.

If Saudi Arabia’s government puts a limit on how much Israeli Dead Sea salt it will import this year, what trade barrier is this?

a)

embargo

b)

tariff

c)

quota

d)

opportunity cost

21.

Why is it important for a country to invest in human capital?

a)

A country needs money in order to pay its workers.

b)

Workers enjoy getting extra training and job opportunities.

c)

Businesses cannot do all the training needed by workers to be successful.

d)

A country’s economy is more successful when workers have a good education and health care.

22.

Which of the following would reflect Israel’s mixed economy?

a)

Prices and wages are solely regulated by the country’s government.

b)

A diversified combination of privately-owned businesses and government regulations.

c)

The country’s distribution of resources is based on inheritance.

d)

Economic decisions are based on customs and beliefs of ancestors.

23.

When a government decides to increase a tariff, it increases the amount of a tax placed upon ___________.

a)

people’s income

b)

imported goods

c)

renewable resources

d)

people’s property

24.

Syria has not built new factories or used new technology in many years. What is the country NOT investing in?

a)

opportunity costs

b)

natural resources

c)

human capital

d)

capital goods

25.

Why is specialization so valuable to international trade today?

a)

Most countries only make one product really well.

b)

It allows people to do a more efficient job at producing what they make best and trade for the things they need.

c)

It keeps the prices low on imported goods.

d)

It limits the amount of agriculture a country allows.

26.

What is a main reason for people to exchange currency?

a)

to have foreign money

b)

to use American dollars to trade

c)

to make more money by trading currencies

d)

to buy and sell goods and services with other countries

27.
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)
28.
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.
29.
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
30.
In this economy, manufacturers of automobiles control the number of vehicles produced each month in an effort to avoid surpluses that would minimize their profits.
a)
Big Wheels economy
b)
Market economy
c)
Command economy
d)
Traditional economy
31.
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
32.

Israel has specialized in the area of technology because:

a)

It has few natural resources.

b)

It has a poorly educated population.

c)

The money earned is used to support the military.

d)

The country has little in the way of fishing.

33.

How are economic decisions made in a traditional economy?

a)

Government planners

b)

Consumers

c)

Customs and beliefs

d)

A mix of consumers and government leaders

34.

One of the biggest problems with state-run oil industries is:

a)

poor organization and inefficiency

b)

Few remaining oil deposits

c)

No labor force

d)

Lack of a market for oil