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Economic Understanding of Southwest Asia

Total questions: 31

Worksheet time: 16mins

Name
Class
Date
1.

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, how to produce, and for whom to produce.

b)

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

c)

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

2.

What is ‘specialization’?

a)

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

b)

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

c)

Directly trading goods with another country without having to use money

3.

Why is specialization so valuable to international trade today?

a)

Most countries only make one product really well.

b)

It keeps the prices low on imported goods.

c)

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

4.

Saudi Arabia specializes in the production of:

a)

Olives and grapes

b)

Oil and natural gas

c)

Oil and olives

5.

Why has Israel specialized in the area of technology?

a)

It has few natural resources and little farmland.

b)

It has a poorly educated population.

c)

The country has little in the way of fishing.

6.

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

a)

Traditional

b)

Market

c)

Mixed

7.

In a traditional economy, how are economic decisions made?

a)

Consumers

b)

Customs and Traditions

c)

Government Leaders

8.

Why was OPEC created?

a)

To regulate the supply and price of oil

b)

To keep non-members from producing any oil

c)

To help Palestinian Arabs with problems with Israeli Jews

9.

Where are most OPEC countries located?

a)

North America

b)

Southern and Eastern Asia

c)

Southwest Asia

10.

What happens to the price of oil when OPEC countries decide to reduce production?

a)

Oil prices decrease

b)

Oil prices increase

c)

Oil prices stay the same

11.

What is the definition of Gross Domestic Product (GDP)?

a)

The total value of all the goods and services a country produces in a year

b)

The total value of all goods imported within a year

c)

The total value of all goods produced by entrepreneurs in a year

12.

Which Southwest Asian country’s businesses are under the LEAST amount of government control?

a)

Israel

b)

Iran

c)

Syria

13.

Tariffs and quotas are alike because they both __________________.

a)

restrict or limit trade between countries.

b)

increase trade between countries.

c)

make trading a lot easier between countries.

14.

In 1973, Southwest Asian countries stopped exporting oil to the United States in protest against the US support of Israel. What type of trade barrier is this?

a)

Tariff

b)

Quota

c)

Embargo

15.

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

a)

Literacy rate has no effect on the standard of living.

b)

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

c)

Low literacy rate creates a higher standard of living.

16.

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)

Tariff

b)

Quota

c)

Opportunity Cost

17.

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

a)

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

b)

A combination of privately-owned businesses and government regulations.

c)

Economic decisions are based on customs and beliefs of ancestors.

18.

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

a)

Natural Resources

b)

Human Capital

c)

Capital Goods

19.

A person who takes risks by starting a new business is known as a(n):

a)

Economist

b)

Entrepreneur

c)

Dictator

20.

What is one problem of a market economy?

a)

Prices for goods can get high very quickly if demands go up but the supply doesn't change.

b)

There can be a shortage of goods if the government does not predict which goods will be needed by people.

c)

The price of goods is set by the government, so people know exactly how much things will cost.

21.

How does having natural resources help the economy of a country?

a)

The country is able to produce all the goods and services that it needs.

b)

The country saves money because it does not have to import natural resources needed by the people.

c)

Companies can export natural resources without having to create goods to sell.

22.

Which word has the same meaning as the economic term "tariff"?

a)

Tax

b)

Limit

c)

Money

23.

What are capital (physical) goods?

a)

The factories, machinery, and technology used to produce goods and services.

b)

The people who perform labor and the education and training needed to make them more productive.

c)

Occurs when both or all countries expect to gain from trading with one another.

24.

What is Human Capital?

a)

The people who perform labor and the education and training needed to make them more productive.

b)

Materials or substances that occur in nature and can be used for economic gain.

c)

The factories, machinery, and technology used to produce goods and services.

25.

An instrument for showing how economic systems relate to each other on a scale of more government control versus less government control is called _____________________________________.

a)

Currency Exchange

b)

Literacy Rate

c)

Economic Continuum

26.

In a command economy, how are economic decisions made?

a)

Government Leaders

b)

Customs and Traditions

c)

A mix of consumers and government leaders

27.

When a government decides to increase a tariff, it increases the amount of tax placed upon what type of good?

a)

Imported Good

b)

Exported Good

c)

Currency

28.

Countries with a high literacy rate usually have a higher GDP per capita.

a)

True

b)

False

29.

An embargo is a type of trade barrier that places a limit on the amount of goods that can be imported into a country.

a)

True

b)

False

30.

What is human capital?

a)
  1. the skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country.

b)

Capital Humans

c)

An embargo is a type of trade barrier that places a limit on the amount of goods that can be imported into a country.

31.

What is physical capital?

a)

People

b)

assets, such as building, machinery, and vehicles, which are owned and employed by an organisation.

c)

Countries with a high literacy rate usually have a higher GDP per capita.