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Middle East Economies & OPEC

Total questions: 9

Worksheet time: 5mins

Name
Class
Date
1.

What is the biggest factor or factors affecting the

answers to these questions in a traditional

economy?

a)

popular votes

b)

custom and habit

c)

supply and demand

d)

government planning

2.

Saudi Arabian oil and energy resources are

wholly owned and controlled by the state-owned

Saudi Arabian Oil Company. This means that the

energy sector of the Saudi Arabian economy is

MOST similar to which of the following?

a)

a pure market economy

b)

a pure command economy

c)

a command economy with some market

principles

d)

a market economy with some command

principles

3.

A country that allows the forces of supply and

demand to determine most economic choices,

but also imposes regulations on how goods may

be produced and sold has a

a)

mixed economy.

b)

pure market economy.

c)

traditional economy.

d)

pure command economy.

4.

Which industry is MOST important to the Saudi

Arabian economy?

a)

the oil industry

b)

the steel industry

c)

the fishing industry

d)

the tourism industry

5.

What answer choice describes economic

specialization?

a)

An economy in which the government controls

the means of production.

b)

An economy in which all economic barriers to

trade have been eliminated.

c)

An economy in which producers produce the

goods they can create most efficiently and trade

for others.

d)

An economy in which producers look to the past

in order to answer the three basic economic

questions.

6.

Which answer choice correctly matches each

word with its definition?

a)

embargo = ban on trade of a good

quota = limit on imported goods

tariff = tax on imported goods

b)

embargo = limit on imported goods

quota = tax on imported goods

tariff = ban on trade of a good

c)

embargo = limit on imported goods

quota = ban on trade of a good

tariff = tax on imported goods

d)

embargo = ban on trade of a good

quota = tax on imported goods

tariff = limit on imported goods

7.

A monetary exchange system is necessary for

international trade because it

a)

helps governments control inflation and deflation

rates.

b)

allows goods to be traded between nations with

different currencies.

c)

allows citizens from a nation to vacation in other

countries.

d)

helps governments increase the efficiency of

their economies.

8.

How does the Organization of the Petroleum

Exporting Countries (OPEC) achieve its goal of

stabilizing the worldwide price for oil?

a)

by setting member production quotas to lower

the overall supply of oil

b)

by purchasing most of the oil available on the

market from nonmembers

c)

by arranging exclusive contracts with private and

nationalized oil companies

d)

by using its vote on the United Nations Security

Council to set acceptable prices

9.

In 1968, the Organization of the Petroleum

Exporting Countries publicly declared that all

member nations had the inalienable right to

which of the following?

a)

ownership of their militaries

b)

ownership of their waterways

c)

ownership of their human capital

d)

ownership of their natural resources