What would happen if the Organization of the Petroleum Exporting Countries (OPEC) decided to produce less oil?

The price of oil would increase.

Which would be most likely to happen if a Saudi Arabian company sold a product to U.S. consumers without exchange rates?

Consumers would have difficulty determining the cost of the product.

Which statement BEST shows difference between tariffs and quotas if a country was trying to protect domestic producers?

Tariffs raise prices on imports, while quotas set limits on imports.

How do investments in human capital to improve the efficiency of production?

by providing the labor force with important skills

How do embargoes differ from other trade barriers such as quotas and tariffs?

Embargoes cause an end to all trade across a range of goods.

Why would it be difficult for an entrepreneur in Saudi Arabia to start a new business in the oil industry?

The oil industry is controlled by the government of Saudi Arabia.

What action would have the MOST positive effect on the Iraqi economy?

giving businesses tax breaks when they purchase new machinery

In what way do mixed economies reflect elements of both market and command economies?

Both public and private sectors play large roles in directing economics.

How do trade barriers like tariffs, quotas, embargos, sanctions, and subsidies compare?

They all encourage citizens to buy more domestic products.

Which of the following situations involves an investment in capital goods?

A farmer buys a new tractor to replace his old one.

Which would affect entrepreneurship in a country the LEAST?

the availability of natural resources

What factor or factors direct economic activity in mixed economies?

influence from both the public and private sectors

What conclusion can be made based on the information in the table?

Countries that invest more in human capital have more wealth distribution., Countries that invest more in human capital have higher standards of living

Based on the table, what conclusion can be made?

Israeli businesses have more modern capital goods than Iraq.

Compared to Saudi Arabia, what does the economy of Turkey have?

more government regulation and intervention

Which would affect entrepreneurship in a country the MOST?

whether the country had a market or command economy

Which is a result of a country investing in human capital?

GDP will increase because educated workers will be more productive.

What would be the MOST effective way for a country to raise the average standard of living of its people?

improve literacy rates by investing in education

How do entrepreneurs benefit the economy?

They start new businesses and create employment opportunities.

Which describes how a mixed command and a mixed market economy would answer the three economic questions differently?

A mixed command economy allows for much less freedom in answering the Qs.

Based on the map, which BEST explains how specialization encourages Iran to trade with other countries?

Iran can export oil to pay for imported goods that it can’t produce.

Based on the table, which of the following is MOST LIKELY true?

Saudi Arabia has a higher standard of living than Afghanistan.

Based on the table, what conclusion can be made?

Turkey most likely has a high standard of living.

Based on the excerpt, what is the overall goal of OPEC?

to increase control over the global oil supply

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Unit 4: Economics of Southwest Asia

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Questions 38

Answers

1
What is this an example of?
entrepreneurship
specialization
Tariffs
quotas
2
What would happen if the Organization of the Petroleum Exporting Countries (OPEC) decided to produce less oil?
The quality of oil would increase.
The demand for oil would increase.
The price of oil would increase.
The supply of oil would increase.
3
Which would be most likely to happen if a Saudi Arabian company sold a product to U.S. consumers without exchange rates?
Consumers would have difficulty determining the cost of the product.
The company would have to pay a higher import tariff.
Consumers in the United States only use the United States dollar.
Domestic competition in Saudi Arabia would drive up the product’s price.
4
Which of the following would make the Saudi Arabian economy more like the Israeli economy?
specializing more heavily in oil production
expanding the private sector
introducing a minimum wage
increasing state control of major industries
5
Which statement BEST shows difference between tariffs and quotas if a country was trying to protect domestic producers?
Tariffs raise prices on exports, while quotas set limits on exports.
Tariffs raise prices on imports, while quotas set limits on exports.
Tariffs raise prices on exports, while quotas set limits on imports.
Tariffs raise prices on imports, while quotas set limits on imports.
6
How do investments in human capital to improve the efficiency of production?
by providing the labor force with important skills
by improving the machinery used by businesses
by offering financial incentives for workers
by incorporating new technologies into the workplace
7
Based on the table, businesses in which country are MOST LIKELY to depend on outdated equipment?
Syria
Iraq
Iran
Israel
8
Which of the following countries falls closest to the command side of the economic spectrum?
Iran
Turkey
Israel
Saudi Arabia
9
How do embargoes differ from other trade barriers such as quotas and tariffs?
Embargoes can have a negative effect on domestic production.
Embargoes are often used to protect domestic industries.
Embargoes lead to reductions in foreign economic investments.
Embargoes cause an end to all trade across a range of goods.
10
Why would it be difficult for an entrepreneur in Saudi Arabia to start a new business in the oil industry?
The oil industry is controlled by the government of Saudi Arabia.
The economy of Saudi Arabia is dependent on foreign direct investment.
The oil industry is controlled by OPEC
The economy of Saudi Arabia is a pure command economy.
11
What action would have the MOST positive effect on the Iraqi economy?
reducing the length of the school day so minors can seek employment
giving businesses tax breaks when they purchase new machinery
encouraging population growth by reduction restrictions on immigration
raising export tariffs in order to raise more government revenue
12
In what way do mixed economies reflect elements of both market and command economies?
Both the prices of goods and workers’ income is determined by market forces
Both large and small businesses are competitive in most markets.
Both consumers and producers are told what to do by the government.
Both public and private sectors play large roles in directing economics.
13
How do trade barriers like tariffs, quotas, embargos, sanctions, and subsidies compare?
They all are used in times of conflict, such as a war.
They all give citizens more economic freedom.
They all encourage citizens to buy more foreign products.
They all encourage citizens to buy more domestic products.
14
Which of the following situations involves an investment in capital goods?
A government starts providing kindergarten.
A restaurant starts opening earlier so it can serve lunch.
A farmer buys a new tractor to replace his old one.
A company pays its employees’ graduate school tuition.
15
Which would affect entrepreneurship in a country the LEAST?
the availability of natural resources
the complexity of starting a new business
the barriers to entry to major markets
the tax rate imposed on small businesses
16
What factor or factors direct economic activity in mixed economies?
the changes in the market
decisions made by government leaders
the need to function without the use of currency
influence from both the public and private sectors
17
What conclusion can be made based on the information in the table?
Countries that invest more in human capital have more wealth distribution.
Countries that invest more in capital goods have higher standards of living
Countries that invest more in human capital have higher standards of living
Countries that invest more in capital goods have more wealth distribution.
18
Where would MOST Southwest Asian nations be placed on the continuum?
near point IV
near point I
between points I and II
between points II and III
19
Based on the table, what conclusion can be made?
Iran spends more on education than Israel.
Syria has more natural resources than Iraq.
Israeli businesses have more modern capital goods than Iraq.
Syrian citizens attend school more often than Iranian citizens.
20
Which of the following is not one of the three economic questions?
When to produce
What to produce
For whom to produce
How to produce
21
Compared to Saudi Arabia, what does the economy of Turkey have?
a larger dependence on petroleum revenue
a smaller dependence on agricultural revenue
more government regulation and intervention
less government regulation and intervention
22
Based on the table, which country can you infer has invested the MOST in human capital?
Turkey
Saudi Arabia
Iran
Israel
23
Which country in Southwest Asia is closest to a pure market economy on the economic continuum?
Turkey
Israel
Saudi Arabia
Iran
24
Which would affect entrepreneurship in a country the MOST?
whether the country imposed barriers to international trade
whether the country had a market or command economy
whether the country used a strong official currency
whether the country was a parliamentary or presidential democracy
25
In which type of economy is the government MOST LIKELY to set production quotas for certain goods?
a mixed economy
a traditional economy
a command economy
a market economy
26
Which is a result of a country investing in human capital?
GDP will stay the same because human capital does not affect it.
GDP will increase because educated workers will be more productive.
GDP will no longer be essential because citizens will have higher education
GDP will decrease because the cost of investing in human capital is high.
27
What would be the MOST effective way for a country to raise the average standard of living of its people?
cut taxes and reduce government programs
decrease competition by creating barriers to trade
nationalize industries and set production quotas
improve literacy rates by investing in education
28
How do entrepreneurs benefit the economy?
They provide services for the government and improve national security.
They improve the value of the country’s official currency.
They start new businesses and create employment opportunities.
They increase their country’s level of investment in human capital.
29
What problem would a country try to address by increasing investments in human capital?
lack of natural resources
high rate of unemployment
lack of foreign trading partners
high level of government regulation
30
In a market economy, how are economic decisions made?
Consumers and the market
Custom and habit
Combination of consumers and government planners
Government planners
31
Which describes how a mixed command and a mixed market economy would answer the three economic questions differently?
A mixed command economy answers the questions based on customs and habits.
A mixed command economy does not answer the questions at all.
A mixed command economy allows for much less freedom in answering the Qs.
A mixed command economy allows for much more freedom in answering the Qs.
32
In a command economy, how are economic decisions made?
Consumers and the market
Custom and habit
Government planners
Combination of consumers and government planners
33
Based on the map, which BEST explains how specialization encourages Iran to trade with other countries?
Iran can export oil to pay for imported goods that it can’t produce.
Iran’s theocratic government can force other Islamic nations to trade.
Iran can use the specialization to raise its GDP.
Iran is self-sufficient, so it doesn’t need to trade.
34
Based on the table, which of the following is MOST LIKELY true?
Saudi Arabia has a higher standard of living than Afghanistan.
Afghanistan’s economy is mainly industrial.
Iraq’s economy is mainly agricultural.
Turkey has a higher unemployment rate than Iraq.
35
Based on the table, what conclusion can be made?
Turkey most likely has a low gross domestic product.
Turkey most likely has a high rate of unemployment.
Turkey most likely has a high standard of living.
Turkey most likely has a low level of export activity.
36
Which of the following countries in Southwest Asia relies on hi-tech industry and diamond cutting for economic growth?
Israel
Iran
Saudi Arabia
Turkey
37
What is the biggest factor or factors affecting the answers to these questions in a market economy?
popular votes
custom and habit
government planning
supply and demand
38
Based on the excerpt, what is the overall goal of OPEC?
to raise the price of crude oil
to reduce global dependence on oil for energy
to increase the amount of oil produced
to increase control over the global oil supply

Unit 4: Economics of Southwest Asia Flashcards | StudBud