1. Government and Economic Terms Review Test Tomorrow....Study!!!

2. The way in which a nation uses its resources to satisfy people’s needs and wants. Every economic system has to answer the basic questions of (1) what will be produced? (2) How will it be produced?, and (3) For whom will it be produced?

3. A. Economic Systems B. Government C. Geography

4. Answer A. Economic Systems

5. An economic system in which social roles and culture determine how goods are made, sold, and bought A.Traditional B.Command C.Market

6. Answer A. Traditional Economy

7. An economic system in which the government decides what goods will be produced, how they will be produced, and how they will be distributed. A. Traditional B. Command C. Market

8. Answer B. Command Economy

9. An economic system based on individual choices and voluntary trade (Supply & Demand) A. Traditional B. Mixed C. Market

10. Answer C. Market Economy

11. An economic system that has features of traditional, command, and market systems. A. Command B. Traditional C. Mixed D. Market

12. Answer C. Mixed Economy

13. Any law or practice that a government uses to limit free trade between countries A. Prohibition B. Sharia C. Command Economy D. Trade Barrier

14. Answer D. Trade Barrier

15. A fee charged for goods or services brought into a state or country from another state or country. A. Embargo B. Tariff C. Quota

16. Answer B. Tariff

17. A limit on the amount of a product that may be imported during a given period of time. A. Embargo B. Tariff C. Quota

18. Answer C. Quota

19. A type of trade barrier in which a government places restrictions on the import or export of certain goods. Are often backed by military force.

20. Answer Embargo

21. Organization of Petroleum Exporting Countries which decides the price and amount of oil produced each year in Iraq, Iran, Saudi Arabia, Kuwait and other countries. A. OPEC B. UAE C. AU

22. Answer A. OPEC

23. The amount of one currency that can be purchased for a given unit of another. A. Trade Barrier B. Currency C. Exchange Rate

24. Answer C. Exchange Rate

25. Money in any form that is accepted as a medium of exchange, but especially paper money. A. Exchange rate B. Currency C. Dollar

26. Answer B. Currency

27. The knowledge and skills that allow workers to produce goods and services and earn an income. For example, the knowledge and skills needed to become a doctor, lawyer, teacher or car mechanic. A. Capital Goods B. Human Capital C. Literacy Rate

28. Answer B. Human Capital

29. Resources such as factories, machinery and tools that people use to make other goods. A. Services B. Human Capital C. Capital Goods

30. Answer C. Capital Goods

31. Raw materials that are used to support life and make goods. Examples include trees, land, oil, etc. A.Oil B.Water C.Renewable Resources D.Natural Resources

32. Answer D. Natural Resources

33. The total value of goods and services produced in a country every year. A. GDP B. HNP C. OPEC

34. Answer A. GDP

35. The rare mixture of the qualities needed to create and run businesses. People who have these qualities risk their time, money and energy to make a profit. A. BOSS B. Employer C. Entrepreneur

36. Answer C. Entrepreneur

37. The division of labor into specific tasks and rules to increase efficiency of production; when people, businesses or countries produce specific goods or services in order to produce more A. Human Capital B. Specialization C. Capital Goods

38. Answer B. Specialization

39. What is the purpose of currency? A. To make more profit from the price of goods B. To increase the wealth of the upper class C. To make trading easier between people and nations

40. Answer C. To make trading easier between people and nations

41. How could a high tariff on imported grain help the people in the country charging the tariff? A. Local grain would always be of a higher quality than grain from other countries. B. The grain process would be lower if tariffs were in place. C. Local farmers would be able to sell their grain since it would be cheaper than imported grain.

42. Answer C. Local farmers would be able to sell their grain since it would be cheaper than imported grain.

43. Specialization is the development of skills of a particular type of work such as trading or the production of a specific item. How does specialization affect the economic development of a country? A. Specialization only occurs in wealthy countries B. Specialization allows countries to take advantage of it’s particular skills, abilities, and resources and encourages trade. C. Specialization has no effect.

44. B. Specialization allows countries to take advantage of it’s particular skills, abilities and resources and encourages trade.

45. Why is the organization of Petroleum Exporting Countries (OPEC) powerful? A. OPEC has the most powerful military on earth B. OPEC is a strong supporter of Israel. C. OPEC decides the price and supply of much of the oil on the world market.

46. Answer C. OPEC decides the price and supply of much of the oil on the world market.

47. If Israel invests heavily in capital goods (factories, machines and technology). A.The standard of living should be high. B.The unemployment rate should be high. C.No relationship between investment in capital goods and GDP.

48. Answer A. The standard of living should be high

49. An entrepreneur is a person who A. selects members of OPEC. B. Installs a quota system. C. Begins a business through initiative.

50. Answer C. Begins a business through initiative.

51. Command Iran Saudi Arabia Turkey Israel Market Which country has the MOST government control of business and industry? A. Turkey B. Saudi Arabia C. Iran D. Israel

52. Answer C. Iran

53. In 1973, OPEC restricted trade to all countries that support Israel. A. Quota B. Tariff C. Embargo

54. Answer C. Embargo

55. The use of currency is important to an economy because (why do you need it?) A. Political propaganda B. Banks can flourish and succeed C. It allows for the exchange of goods and services.

57. Based upon a geographical and economic perspective, which body of water plays the most pivotal (important) role in regional trade? A. Gulf of Oman B. Persian Gulf C. Gulf of Aqaba

58. Answer B. Persian Gulf

59. What advantage do Saudi Arabia and Iran have over Israel? A. Both Iran and Saudi Arabia are oil producing countries. B. Both Iran and Saudi Arabia are both destination for tourists. C. Both Iran and Saudi Arabia have stronger armies.

60. Answer A. Both Iran and Saudi Arabia are oil producing countries.

61. A country whose economy is based on the concept of listening to the government for instructions on production and price A. Command B. Market C. Mixed D. Traditional

62. Answer A. Command

63. A country whose economy is based upon the concept of doing things the way of their ancestors A. Command B. Traditional C. Mixed D. Market

64. Answer B. Traditional

65. A country whose economy is based upon the concept of making as much as they can A. Traditional B. Mixed C. Command D. Market

66. Answer D. Market

67. GOVERNMENT

68. If the leader of the Kingdom of Saudi Arabia is a direct descendant, the country is a A. Republic B. Democracy C. Monarchy

69. Answer C. Monarchy

70. Elections are held in the Islamic Republic of Iran. However, the real political power is held by the Islamic religious leaders which means the government is actually A. Autocratic B. Theocratic C. Democratic

71. B. Theocratic

72. In which country do citizens have the MOST political freedom A. Iran B. Saudi Arabia C. Israel

73. Answer C. Israel