Economics of the Middle East

1.

1 point

Tariffs and quotas are alike because they both __________________.

make trading a lot easier between countries.

restrict or limit trade between countries.

increase trade between countries.

completely stop trade between countries.

2.

1 point

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?

embargo

quota

mountain

tariff

3.

1 point

Define specialization:

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

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

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

Directly trading goods with another country without having to use money

4.

1 point

Identify where most OPEC countries located?
Africa
North America
Southern and Eastern Asia
Southwest Asia

North America

Southern and Eastern Asia

Southwest Asa (Middle East)

Africa

5.

1 point

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

tariff

embargo

quota

mountain

6.

1 point

In a traditional economy, how are economic decisions made?

government leaders

customs and traditions

a mix of consumers and government leaders

consumers

7.

1 point

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

Economist

Dictator

Entrepreneur

International trader

8.

1 point

Tell why Israel specialized in the area of technology?

It has few natural resources and little farmland.

The money earned is used to support the military.

It has a poorly educated population.

The country has little in the way of fishing.

9.

1 point

Explain why OPEC created?

To help Palestinian Arabs with problems with Israeli Jews

To regulate the supply and price of oil

To keep non-members from producing any oil

To design new technology for getting oil out of the ground

10.

1 point

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

mixed

command

traditional

market

11.

1 point

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

Oil prices decrease

Oil prices increase

Oil becomes free to OPEC members

Oil prices stay the same

12.

1 point

Saudi Arabia specializes in the production of:

oil and olives

livestock and oil

olives and grapes

oil and natural gas

13.

1 point

Discuss why specialization is so valuable to international trade today?

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

Most countries only make one product really well.

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

It keeps the prices low on imported goods.

14.

1 point

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

Iraq

Saudi Arabia

Israel

Iran

15.

1 point

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

Human capital

capital goods

opportunity costs

Natural resources

16.

1 point

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

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

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

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

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

17.

1 point

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

Low literacy rate creates a higher standard of living.

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

Literacy rate has no effect on the standard of living.

The standard of living is independent of literacy rate.

18.

1 point

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

Economic decisions are based on customs and beliefs of ancestors.

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

A combination of privately-owned businesses and government regulations.

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

19.

1 point

One of Iran’s biggest problems with their state-run oil industry is:

Few remaining oil deposits

Inefficiency and poor organization

Lack of a market for oil

No labor force

20.

1 point

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

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

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

The total value of taxes collected in a year

The total value of all goods imported within a year