SWA Economics Review

Question 1

What happens to a country's GDP when they invest in human capital?

Accepted Answer

GDP goes up because trained workers can do their job better

Question 2

OPEC's primary function is to regulate/control...

Accepted Answer

Production and Price of Petroleum

Question 3

International trade is made easier by what?

Accepted Answer

currency exchange

Question 4

Someone who is willing to take a risk to begin a new business is called a(n)..?

Accepted Answer

Entrepreneur

Question 5

What obstacle is created to reduce trade, usually to encourage citizens to buy domestic goods?

Accepted Answer

Trade barrier

Question 6

What are capital goods?

Accepted Answer

Tools, factories, technology, & machines used to make goods

Question 7

How has the discovery of oil affected Southwest Asia?

Accepted Answer

Countries with oil have a high standard of living

Question 8

What type of barrier is placed on countries to serve as a punishment or penalty?

Accepted Answer

Sanction

Question 9

Which country would appear to have the strongest economy?

Accepted Answer

Country D (GDP $29,800)

Question 10

Which question is NOT asked when determining a country's economy?

Accepted Answer

Why to produce?

Question 11

Israel has a strong economy even though it lacks oil. Why is this?

Accepted Answer

Israel uses its other resources to specialize in products

Question 12

When governments give money to domestic business this is an example of which barrier?

Accepted Answer

Subsidy

Question 13

Why is oil such a valuable resource for most Southwest Asian countries?

Accepted Answer

Modern countries depend on oil to supply their energy sector

Question 14

Saudi Arabia and Iran have economies based around which of the following specialization?

Accepted Answer

Oil

Question 15

Which term describes the level of wealth citizens enjoy in a country?

Accepted Answer

Standard of living

Question 16

What factor measures the strength of a country's economy?

Accepted Answer

The value of goods and service a country produces in a year

Question 17

What is a tariff?

Accepted Answer

A tax placed on imported goods

Question 18

____ is to trade within a country as _____ is to trade outside a country.

Accepted Answer

Domestic, Foreign

Question 19

In a market economy, who makes the decisions of what, how, and for whom to produce?

Accepted Answer

Consumers (based on supply & demand)

Question 20

What are skilled workers who perform jobs called?

Accepted Answer

Labor

Question 21

Like most countries in the world, the economies of Israel, Saudi Arabia, Turkey and Iran are _.

Accepted Answer

Mixed

Question 22

What determines the 3 economic questions in a Traditional Economy?

Accepted Answer

Traditions, customs, rituals, habits, ancestors

Question 23

Which term describes a product a country makes best and most efficiently?

Accepted Answer

Specialization

Question 24

Which barrier completely halts trade due to political/economic reasons?

Accepted Answer

Embargo

Question 25

Why are most economies located on the mixed economic continuum today?

Accepted Answer

A mixture of command & market is best for economic growth

Question 26

Buildings, roads, power, and transportation are all examples of which of the following?

Accepted Answer

Infrastructure

Question 27

Who decides what, how, & for whom to produce in a command economy?

Accepted Answer

Government

Question 28

What is the role of entrepreneurship in SWA?

Accepted Answer

Most countries allow entrepreneurship b/c it increases GDP

Question 29

What typically happens when countries choose to invest in the factors of production?

Accepted Answer

GDP Increases

SWA Economics Review

Questions 29

SWA Economics Review

Questions 29