SW Asia Economics 2

1.

1 point

How do Iran and Saudi Arabia benefit from belonging to the Organization of Petroleum Exporting Countries (OPEC)?

OPEC keeps the price of oil high on the world market

Countries in OPEC are able to share water resources with each other.

The organization sets up tariffs to protect Southwest Asian manufacturing.

OPEC makes it possible for Southwest Asian countries to buy oil at low prices.;

2.

1 point

Why is it important for nations to have a system of convert from one currency to another?

The dollar is the most valuable currency in the world today.

The conversion to different currencies makes goods cost less.

The banks are not able to handle different kinds of currencies.

Converting currency makes it possible to buy and sell goods between nations with different types of money.

3.

1 point

What are capital goods?

the workers who make the goods and services

the factories and machines used to make goods

the money spent to traing workers to use new technology

the goods and services that are produced for a country's economy

4.

1 point

How has Israel's lack of oil affected that country's economy?

Israeli businesses use little oil to operate.

Israel has little industry due to their lack of oil.

The Israeli economy depends on technology rather than natural resources, such as oil.

The Israeli economy is built around large-scale farming.

5.

1 point

A _______________ is one in which government planning groups make most of the economic decisions for the worker.

mixed market

market economy

traditional economy

command economy

6.

1 point

What is the definition of "economic specialization"?

trying to avoid investing in industry and technology because of the high costs

directly swapping goods from one country to another without having to use money

producing all goods and services needed for a country's growth so that trade with other countries is not needed

producing those goods a country can make most easily so they can trade them for goods made by others that cannot be produced locally

7.

1 point

What is the definition of gross domestic product (GDP)?

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

the amount collected in taxes from the people of a country in a given year

the value of all the products a country buys from overseas nations in a year

the value of all goods and services produced by small shops and individually owned businesses in a country

8.

1 point

What is the definition of human capital?

skills and education the workers have

taxes collected from a country's worker

money paid to workers for producing goods

amount of goods sold in foreign trade in a year

9.

1 point

Why do most economies in the world today operate somewhere in between a market economy and a command economy?

Government control make a market economy more profitable.

Most consumers prefer government control to a free market system.

Government control of some aspects of the economy has never been successful in the modern world.

Most economies have found they need a mix of free market and some government control to be successful and protect consumers.

10.

1 point

Other names for a market economy are _____________, free enterprise, or laisses-faire (French phrase that means to allow them to do as they please).

traditional economy

capitalism

command economy

bartering

11.

1 point

Israel has invested heavily in capital goods in all of the following areas EXCEPT

oil.

defense.

communication.

farming and agriculture

12.

1 point

What is the definition of a tariff?

a tax paid by the purchaser when goods are sold

a tax placed on goods coming into one country from another

a tax placed on goods made by local craftsmen or manufacturers

a fee paid when goods are shipped from one state to another in the United States

13.

1 point

Why have the Israelis made a big investment in human capital?

Their main industry is the oil industry.

Investing in human capital takes very little money.

They have no bring in workers from other countries.

They need well-trained workers because their economy depends on advanced technology

14.

1 point

If a country does not invest in its human capital, how can it affect the country's gross domestic product (GDP)?

Investment in human capital has little effect on a country's GDP

Most workers want to keep their job and do not care about GDP

GDP is only affected if workers pay for the investment out of their own pockets.

GDP may go down becaue poorly trained workers will not be able to do tehir jobs as well.

15.

1 point

In a traditional economy, how are economic decisions made?

custom and habit

government planners

consumers and the market

combination of consumers and government planners