SS7E4-6: Southwest Asia Economic Understanding Test

Who takes a financial risk in starting a new business?

• Entrepreneur

• Economist

• Inventor

• Government planner

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

• demand

• quota

• embargo

• tariff

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

• Some government control has never been successful.

• Government control always makes a market economy more profitable.

• Most consumers prefer government control to free market.

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

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, why to produce, when to produce?

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

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

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

What is ‘specialization’?

• 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

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

• Directly trading goods with another country without having to use money

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

• consumers

• market

• government

• producers

Saudi Arabia specializes in the production of:

• oil and olives

• olives and grapes

• oil and natural gas

• livestock

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

• traditional

• command

• market

• mixed

Why was OPEC created?

• To design new technology for getting oil out of the ground

• To regulate the supply and price of oil

• To keep non-members from producing any oil

• To help Palestinian Arabs with problems with Israeli Jews

Where are most OPEC countries located?

• Africa

• North America

• Southern and Eastern Asia

• Southwest Asia