Unit 4 and 5 Test review SWA Government and Economics

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

• mixed economy.

• pure market economy

• traditional economy.

• pure command economy.

Why is investment in technology of great importance to the Israeli economy?

• 
  because the nation has vast reserves of oil that it is unable to access

• 
  because the nation has a very low rate of literacy among its population

• because the nation is less developed than most other Southwest Asian nations

• because the nation covers a small geographic area and lacks natural resources

Generally, "mixed economy" means an economy that

•  

  has both command and market elements.

• has a large industrial sector and a large agricultural sector

• relies only on supply and demand to determine production.

• relies on the use of currency as well as bartering.

The main weakness of Saudi Arabia's economy is that it is​ (a)  

• largely dependent on a single resource
• Isolated by sanctions by other countries
• largely dependent on foreign aid
• isolated by protective barriers to trade

Multiple Choice Question

Use the table of oil production and gross domestic product (GDP) in Southwest Asia to answer the question.

Based on the table, what conclusion can reasonably be drawn about oil production and the economies of Southwest Asian nations?

• Nations that produce oil often have very weak economies.

•  

  Oil production has little effect on the economies of Southwest Asian nations.

• Oil's economic benefits are distributed equally throughout Southwest Asia.

• Increased oil production often leads to economic growth.

Tariffs protect domestic businesses from foreign competition by

• lowering production costs and increasing access to resources.

• eliminating government regulations that lower productive efficiency.

•  

  preventing foreign goods from being imported to a country.

• making foreign goods more expensive for consumers than local goods.

What should a country economically specialize in producing?

•  

  goods that its people do not require

•  

  goods that it can produce the most efficiently

• goods that its trading partners specialize in

• goods that it can produce using few resources

What answer choice describes economic specialization?

• An economy in which the government controls the means of production.

• An economy in which producers look to the past in order to answer the three basic economic questions.

• An economy in which producers produce the goods they can create most efficiently and trade for others

• An economy in which all economic barriers to trade have been eliminated.

Which of the following organizations did Iraq, Iran, Kuwait, Saudi Arabia, and Venezuela found together?

• the International Trade Organization

• the Organization for Economic Co-operation and Development

• the Organization of Petroleum Exporting Countries

• the Economic Cooperation Organization

Match the following

• Embargo

• a tax placed on goods imported from a country

• Tariff

• a ban placed on all trade with a particular country

• Quota

• a limit on the amount of goods that can be imported from a country