#1 Leading Exports Saudi Arabia Israel Petroleum and Petroleum machinery and equipment, Products software, cut diamonds, agricultural products, chemicals, textiles and apparel Which statement describes the potential trading relationship between Saudi Arabia and Israel? Since the both specialize, they do not make good trading partners. Because they specialize in different goods, they would make good trading partners They do not use the same currency; therefore it is impossible for them to trade Petroleum is always worth more than Israel’s exports so they should not trade.

#2 South Africa generates more than 50% of Africa’s electricity. Based on the idea of specialization, how can other countries in Africa benefit from South Africa’s electricity production? Learn from South Africa and produce their own electricity Produce electricity so South Africa can begin to produce other things Try to produce everything on their own so they won’t rely on South Africa at all Produce goods or services that South Africa needs and trade for electricity

#3 From 2003 to 2007 Nigeria’s GDP increased 5%. Which statement below is most consistent with this data? There was an investment in human capital through education and training Oil companies in the region shut down Nigeria stopped investing in capital resources like machinery and technology The countries surrounding Nigeria had improved economies

#4 Countries in Southern and Eastern Asia have resources and materials which allow them to produce a certain set of goods that they specialize in. What happens as a result of this specialization? Their economies are extremely weak because they do not have enough goods. Countries with more resources do not want to trade with them because of their limited goods Specialization in producing a set of goods encourages trade between countries The Asian countries can only trade with each other because of their resources.

#5 According to the normal relationship, if Iran decided to invest several billion dollars in education and training, how would their GDP likely be affected? It would decrease It would not change It would increase It would depend on other factors

#6 Saudi Arabia and Iran both invest in capital at higher rates than Israel. Based on this fact, which conclusion would be most logical? Israel has fewer uses for capital Israel has a lower growth rate Israel has more natural resources Israel can’t trade with either country

#7 Which is a major similarity between the economies of Saudi Arabia and Iran? Both countries rely on oil as a primary export Neither country has to trade with other countries Both countries trade their vast resources of water Neither country is concerned with investment of capital

#8 India’s GDP impressively increased 9.2% from 2006-2007. This fact supports which statement about India’s workforce? During this time, there was less immigration into India Since the 1990’s there has been an increase in spending on education and training India’s workforce is producing fewer goods now than it did before independence This increase in production can only be explained by India’s workforce getting larger

#9 Saudi Arabia’s literacy rate increased from approximately 48% in 1980 to over 78% by 2009. Why is this important for the Saudi Arabian economy? It has helped increase foreign trade It caused a decrease in foreign debt It helped to increase the country’s GDP It resulted in fewer jobs for Saudi citizens

# 10 China’s economy has begun to change from a command economy to a more market economy. This has resulted in increased investment in capital both by the Chinese and by foreign entrepreneurs. How will this investment in capital affect China’s GDP? It will increase China’s GDP It will decrease China’s GDP It will have no effect on China’s GDP It is not related to China’s GDP

# 11 Nigeria has large deposits of oil and is currently exporting a significant amount of oil. However, Nigeria has very few industries outside of oil and no other good natural resources. How does this impact Nigeria’s GDP? It makes the GDP more dependent on agriculture It makes the GDP more dependent on oil production It makes the GDP inaccurate because there is little oil industry It makes the GDP inaccurate because there is only one major natural resource in Nigeria

#12 After the apartheid era, South Africa invested heavily in modern production technologies. Which statement below is an example of a result of this investment? South Africa’s GDP has increased South Africa’s population has decreased Fewer countries trade with South Africa Agriculture is the main source of income for South Africa

#13 Which describes entrepreneurship? The physical talents of people to build things The ability to harvest and use natural resources Machines, tools, and devices used for production Putting together productive resources to produce a good or service

#14 In Iran, the economy is highly centralized and there are a lot of regulations about private individuals opening businesses. However, Saudi Arabia has made owning and operating a business very easy. What impact does this have on the role of entrepreneurs in both countries? Entrepreneurs are not affected by government regulations. It will limit efforts of entrepreneurs in both countries. Entrepreneurs will be able to make significant contributions to Saudi Arabia’s economy but not Iran’s. Both Iran and Saudi Arabia will benefit greatly from the efforts of entrepreneurs.

#15 China’s economy is growing at a very rapid pace. Why are entrepreneurs important in the growth and transition of China’s economy? They build new factories They run the government The planned the Olympics in 2008 The provided guidance on education

#16 In South Africa, it is easy to start a business. In addition, private property rights are well protected. What impact does this have on the role of entrepreneurs in South Africa? Entrepreneurs are not affected by this. The efforts of entrepreneurs are limited because of a lack of government rules Entrepreneurs will have no real impact on the economy of South Africa Entrepreneurs can make an important contribution to South Africa’s economy

#17 What are the three basic economic questions that all economic systems must answer? What to produce, why to produce, and how much to produce To what extent to produce, how much to produce, and why to produce When to produce, why to produce, and how long to produce What to produce, how to produce, and for whom to produce

#18 If Nigeria passed a law that taxed all imports from South Africa, this would be known as: An entrepreneur A quota A tariff An embargo

#19 Which word is associated with the idea of having money put into an account to earn interest? Income Investing Credit Spending

#20 Which resource has the MOST DIRECT impact on the population and development of Nigeria? Uranium Lumber Oil Diamonds

#21 Why would one country place an embargo on another country? Political differences Lack of natural resources Lack of transportation Distance

#22 Which explain the primary function of the Organization of Petroleum Exporting Countries (OPEC) ? OPEC is responsible for organizing trade routes to trace oil as it is shipped around the world Only members of OPEC may export oil to other countries They are the countries that establish how oil is to be used around the world. The members are mainly responsible for setting the price and amount of oil produced and exported.

#23 After the Persian Gulf War, the United Nations imposed an embargo on Iraq. What would be the reason an embargo was used by the United Nations? To control the Iraqi economy after the war To restrict trade with Iraq until they met with the United Nations To increase the cost of Iraqi products to help Iraq’s economy To protect Iraq’s domestic industry so it would grow after the war

#24 Oil is the major export of Saudi Arabia to many different countries. Saudi Arabia’s international trade in oil is made much easier by: Use of a worldwide currency A system of exchange currency between countries Trading only with countries that have the same currency Trade of oil for other needed goods so currency is not needed

#25 The North Korean government determines the following: What to produce How to produce For whom to produce According to the information above, North Korea’s economy is MOST LIKELY which type of system? Traditional Market Command Bartering

#26 In order to protect a nation’s car manufacturing industry from foreign car producers, the government charges the importer a fee for each imported car. This is an example of what kind of trade barrier? Subsidy Tariff Quota Embargo

#27 Jiang wants to sell is products he makes in Japan to several other countries around the world. This will involve international trade. What needs to be in place so Jiang can correctly determine the price of his products in these other countries? A treaty with each country setting the price for his products A common Asian currency An embargo on the countries he trades with A system for exchanging currencies between countries

#28 Nigeria has a new industry that build tractors for agriculture. To protect this new industry from competition by lower priced foreign built tractors, the Nigerian government would use what type of economic trade barrier to raise the price of imported tractors? Treaty Tariff Quota embargo

#29 When literacy rates increase in a country A country’s GDP goes down A country’s GDP also increases A country’s GDP stays the same A country’s GDP goes away

#30 When investment in capital increases in a country A country’s GDP will increase A country’s GDP will decrease A country’s GDP stays the same A country’s GDP goes away