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Economic Systems Trade Barriers Factors that influence economic growth All Mixed Up Economies of nations Team One Team Two Team Three Team Four Team Five Team Six

In a traditional economy, how are decisions made? Show Answer

Customs, habits and traditions. Back to Board

How are decisions made in a command economy? Show Answer

Government or government planners Back to Board

Who takes the financial risk in starting a new business in a market economy? Show Answer

Entrepreneurs Back to Board

Why are most modern economies referred to as mixed? Show Answer

Most countries have all aspects of three economic types at work in their economies Back to Board

Which country is the only country that we have studied that has a command economy? Show Answer

North Korea Back to Board

What is the definition of a tariff? Show Answer

A tax placed on goods coming into one country from another. Back to Board

What is an embargo? Show Answer

A halt (stop) to trade with a particular country usually for economic or political reasons Back to Board

What is a quota? Show Answer

A limit to the number of foreign-produced goods that are allowed into a country Back to Board

Why are deserts and mountains considered to be natural trade barriers? Show Answer

Because it is difficult to travel across or get around and transport goods. Back to Board

The OPEC nations control about 40% of the world’s oil supply. The OPEC nations work together to control prices for oil and to keep profits flowing to their countries. One way the that they control prices is to limit production. Each member country is given a maximum amount of oil that they can sell in a given time. Which trade barrier does this describe? Show Answer

Quota Back to Board

What is economic specialization? Show Answer

Producing those goods a country can make most efficiently so they can trade them for goods made by others that cannot be produced locally. Back to Board

What is Human Capital? Show Answer

Skills, education and training that workers have. Back to Board

What are capital goods? Show Answer

The factories, machines and technology (or anything) used to make goods. Back to Board

If country does not invest in Human Capital, how can it affect the country’s GDP? Show Answer

How do Iran and Saudi Arabia benefit from belonging to OPEC? Back to Board

Why is specialization so valuable in international trade today? Show Answer

Specialization allows people to do a more efficient job at producing what they make best and trade. Back to Board

How do foreign investors help a country’s economy? Show Answer

They bring money into the economy. Back to Board

In some countries a single authority decides what is produced. Which term identifies this type of economic system? Show Answer

Command Economy Back to Board

What are the three questions that all economic systems answer? Show Answer

1. What to produce 2. How to produce 3. For whom to produce Back to Board

Saudi Arabia’s literacy rate increased from approximately 48% in 1980 to over 78% by Why is this important for the Saudi Arabian economy? Show Answer

It increased the nation’s GDP and standard of living. Back to Board

What happens to the price of oil when OPEC decides to reduce the production of oil? Show Answer

The price of oil rises. Back to Board

Why is it important to have a system to convert from one currency to another? Show Answer

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

Like most economies in the world, Israel, Saudi Arabia and Turkey’s economy could be best described as: Show Answer

Mixed Back to Board

What does Saudi Arabia specialize in Show Answer

Oil and gas Back to Board

What industry does South Africa specialize in? Show Answer

Diamond and gold mining Back to Board

How has China’s attitude toward entrepreneurship changed in the past several decades? Show Answer

The government has become more open to the idea of allowing some free enterprise. Back to Board

Show Question

How has Israel made up for its lack of natural resources? Show Answer

They have developed a strong technology sector or their economy. Back to Board

The End!! End