1. ECONOMIC UNDERSTANDINGS UNIT ONE SOUTHWEST ASIA

2. SOUTHWEST ASIA (MIDDLE EAST) ECONOMIC UNDERSTANDINGS

3. ECONOMIC UNDERSTANDINGS SS7E5 – THE STUDENT WILL ANALYZE DIFFERENT ECONOMIC SYSTEMS. CRCT PREP 107 -108

4. EQ – WHAT ARE THE THREE BASIC ECONOMIC QUESTIONS?

5. A. COMPARE HOW TRADITIONAL, COMMAND, AND MARKET ECONOMIES ANSWER THE ECONOMIC QUESTIONS OF (1) WHAT TO PRODUCE? (2) HOW TO PRODUCE? (3) FOR WHOM TO PRODUCE? CRCT PREP 107 -108

6. ECONOMICS IS USING LIMITED RESOURCES TO SATISFY UNLIMITED NEEDS AND WANTS.

7. HOW DO WE DETERMINE WHAT KIND OF ECONOMIC SYSTEM IS PRESENT? BY HOW THE SYSTEM ANSWERS THE 3 ECONOMC QUESTIONS WHAT TO PRODUCE? HOW TO PRODUCE? FOR WHOM TO PRODUCE?

8. WHAT ARE THE THREE ECONOMIC QUESTIONS? WHAT IS GOING TO BE PROCUCED? HOW IS IT GOING TO BE PRODUCED? FOR WHOM IS IT GOING TO BE PRODUCED?

9. 3 TYPES OF ECONOMIC SYSTEMS TRADITIONAL COMMAND MARKET

10. IN TRADITIONAL ECONOMIC SYSTEMS, MOST ECONOMIC DECISIONS ARE BASED UPON LONGSTANDING CUSTOMS.

11. WHICH ECONOMIC SYSTEM IS BASED ON OLD TRADITIONS AND CUSTOMS? TRADITIONAL

12. IN COMMAND ECONOMIC SYSTEMS, MOST ECONOMIC DECISIONS ARE MADE BY GOVERNMENT PLANNERS.

13. WHICH ECONOMY SYSTEMS DEPENDS ON GOVERNMENT PLANNERS TO MAKE DECISIONS? COMMAND

14. IN MARKET ECONOMIC SYSTEMS, CONSUMERS, THROUGH THEIR PURCHASES, MAKE MOST ECONOMIC DECISIONS.

15. WHICH ECONOMIC SYSTEM DEPENDS ON CONSUMERS WISHES? MARKET

16. CHARACTERISTICS OF PURE MARKET ECONOMIES LITTLE OR NO GOV. CONTROL FREEDOM OF ENTERPRISE FREEDOM OF CHOICE PRIVATE PROPERTY PROFIT INCENTIVE COMPETITION

17. NO COUNTRY HAS A PURE COMMAND OR PURE MARKET ECONOMIC SYSTEM, MOST COUNTRIES COMBINE ASPECTS OF BOTH OF THESE PURE ECONOMIC SYSTEMS.

18. MIXED ECONOMIES CONTAIN CHARACTERISTICS OF BOTH A COMMAND AND MARKET ECONOMY. MOST ECONOMIC SYSTEMS IN THE WORLD TODAY ARE MIXED.

19. TRADITIONAL, COMMAND, AND MARKET SYSTEM ARE THE THREE TYPES OF ECONOMIC SYSTEMS.

20. WHAT ECONOMIC SYSTEM COMBINES MARKET AND COMMAND SYSTEMS? MIXED ECONOMIC SYSTEM

21. WHAT ARE THE THREE BASIC ECONOMIC SYSTEMS? MARKET COMMAND TRADITIONAL

22. SS7E5 THE STUDENT WILL ANALYZE DIFFERENT ECONOMIC SYSTEMS.

23. EQ – WHAT IS A MIXED ECONOMY?

24. B. EXPLAIN HOW MOST COUNTRIES HAVE A MIXED ECONOMY LOCATED ON A CONTINUUM BETWEEN PURE MARKET AND PURE COMMAND. CRCT PREP – 108 - 109

25. How many basic types of economic systems are there? Name the economic systems. Which economic system do most textbooks say is the most common throughout the world?

26. How many basic types of economic systems are there? 3 Name the economic systems. Traditional, Command, Market Which economic system do most textbooks say is the most common throughout the world? Mixed. The GCEE states that mixed is not an economic system but rather a blending of two different types of systems.

27. Economic Systems Pure Market Pure Command

28. Economic Systems Pure Market Pure Command Iran 45% Saudi Arabia 64% Israel 68%

29. Economic Systems Pure Market Pure Command Nigeria 55% South Africa 64%

30. Economic Systems Pure Market Pure Command North Korea 2% India 54% Japan 73% China 53%

31. QUIZ TO HERE QUIZ IN 3 MINUTES GET OUT SOME BLANK PAPER AND NUMBER 1-10

32. QUESTIIONS 1, 2, 3. WHAT ARE THE THREE BASIC ECONOMIC QUESTIONS?

33. 4. HOW DO WE DETERMINE WHAT KIND OF ECONOMIC SYSTEM IS PRESENT?

34. 5. WHICH ECONOMIC SYSTEM IS BASED ON OLD TRADITIONS AND CUSTOMS?

35. QUESTIONS 6, 7, 8. WHAT ARE THE THREE BASIC ECONOMIC SYSTEMS?

36. 9. IN WHAT KIND OF ECONOMIC SYSTEM DO GOVERNMENT PLANNERS ANSWER THE 3 BASC ECONOMIC QUESTIONS? A. traditional B. COMMAND C. MARKET

37. 10. WHAT DO WE CALL AN ECONOMY THAT HAS FEATURES OF A MARKET ECONOMY AND FEATURES OF A COMMAND ECONOMY?

38. A.COMPARE AND CONTRAST THE ECONOMIC SYSTEMS IN ISRAEL, SAUDI ARABIA, IRAN AND TURKEY. CRCT PREP 109 CB – 144-146

39. EQ – WHAT ARE THE FEATURES OF THE ECONOMIC SYSTEMS IN ISRAEL, SAUDI ARABIA, AND TURKEY.

40. ISRAEL

41. ISRAEL’ ECONOMY (1) WHAT TO PRODUCE? A LARGE PROTION OF ISRAEL’S GDP COMES FROM HIGH TECH MANUFACTURING, FINANCIAL SERVICES, AND AGRICULTURE.

42. (2) HOW TO PRODUCE? ISRAEL HAS SUBSTANTIAL GOVERNMENT OWNERSHIP OF BUSINESS, BUT IS GRADUALLY PRIVATIZTING COMPANIES.

43. FOR WHOM TO PRODUCE? IN ISRAEL THE PRIVATE SECTOR PRODUCES GOODS AND SERVICES FOR DOMESTIC AND INTERNATIONAL MARKETS BASED ON THE MARKET PRICE.

44. WHERE WOULD YOU PLACE ISRAEL ON THE CONTINUUM?

45. Economic Systems ISRAEL Pure Market Pure Command

46. WHERE WOULD YOU PLACE ISRAEL ON THE CONTINUUM? ISRAEL WOULD FALL SLIGHTLY TO THE MARKET SIDE OF CENTER OF THE CONTINUUM

47. SAUDI ARABIA WHAT TO PRODUCE?

48. SAUDI ARABIA’S ECONOMY WHAT TO PRODUCE? SAUDI ARABIA IS THE WORLD’S LEADING PRODUCER OF OIL. THE SAUDI GOVERNMENT CONTINUES TO INVEST IN PETROCHEMICALS, MINING AND REFINING.

49. SAUDI ARABIA HOW TO PRODUCE?

50. (2) HOW TO PRODUCE? OVER 95% OF THE OIL INDUSTRY IN THE COUNTRY IS OPERATED BY THE GOVERNMENT. MOST OTHER MAJOR INDUSTRIES HAVE SIGNIFICANT GOVERNMENT GOVERNMETN INVOLVEMENT. CONTINUED

51. SAUDI ARABIA RELIES HEAVILY ON SPECIALIZED LABOR FROM OTHER COUNTRIES. ESTIMATES ARE THAT A THIRD OF THE LABOR FORCE FALLS INTO THIS CATEGORY.

52. SINCE THE 1980”S SAUDI GOVERNMENT HAS BEEN TRYING TO INCREASE PRIVATE OWNERSHIP OF BUSINESS AND ENCOURAGE MORE JOINT VENTURES WITH PRIVATE FOREIGN COMPANIES.

53. SAUDI ARABIA FOR WHOM TO PRODUCE?

54. FOR WHOM TO PRODUCE? ONE THIRD OF SAUDI ARABIA’S GDP IS BASED ON EXPORTS TO OTHER COUNTRIES. (THIS IS DUE TO THE ECONOMY’S RELIANCE ON THE OIL SECTOR.)

55. WHERE WOULD YOU PLACE SAUDI ARABIA ON THE CONTINUUM?

56. Economic Systems SAUDI ARABIA Pure Market Pure Command

57. WHERE WOULD YOU PLACE SAUDI ARABIA ON A CONTINUUM? SAUDI ARABIA WOULD FALL TO THE COMMAND SIDE OF THE CENTER OF THE CONTINUUM

58. IRAN WHAT TO PRODUCE?

59. IRAN WHAT TO PRODUCE? LIKE SAUDI ARABIA IRAN HAS GREAT OIL WEALTH.

60. IRAN HOW TO PRODUCE?

61. IRAN HOW TO PRODUCE? IRAN HAS MORE OF A MIXED ECONOMY THAN SAUDI ARABIA INSPITE OF THE FACT THAT THE GOVERNMENT TRIES TO KEEP A TIGHT CONTROL OVER THE ECONOMY.

62. IRAN FOR WHOM TO PRODUCE?

63. IRAN –FOR WHOM TO PRODUCE? THE COMMAND SIDE OF IRAN’S ECONOMY IS NOT VERY EFFICIENT. DESPITE THE GREAT WEALTH CREATED BY THE OIL INDUSTRY NOT MANY IRANIANS SHARE IN THAT WEALTH.

64. WHAT IS IRAN’S MOST IMPORTANT RESOURCE? OIL

65. IRAN’S ECONOMY HAS BECOME MORE OF A MIXED ECONOMY IN SPITE OF IRAN’S GOVERNMENT ATTEMPTING TO KEEP MORE CONTROL OF THE ECONOMY HOWEVER

66. Economic Systems IRAN Pure Market Pure Command

67. TURKEY’S ECONOMY

68. HOW DOES TURKEY ANSWER THE QUESTION – WHAT TO PRODUCE? TURKEY HAS A DIVERSIFIED ECONOMY WITH LARGE SERVICE, MANUFACTURING, AND AGRICULTURAL SECTORS.

69. HOW DOES TURKEY DECIDE – HOW TO PRODUCE? SINCE THE LATE 1980’S, TURKEY HAS GRADUALLY MOVED FROM A GOVERNMETN DIRECTED ECONOMY TO MORE PRIVATE ENTERPRISE

70. HOW DOES TURKEY DECIDE – FOR WHOM TO PRODUCE? ONE FIFTH OF TURKEY’S PRODUCTION IS EXPORTED. THE REMAINDER IS CONSUMED BY DOMESTIC CONSUMERS AND THE GOVERNMENT

71. WHERE WOULD YOU PLACE TURKEY ON THE CONTINUUM?

72. Economic Systems TURKEY Pure Market Pure Command

73. WHERE WOULD YOU PLACE TURKEY ON THE CONTINUUM? TURKEY WOULD FALL BETWEEN SAUDI ARABIA AND ISRAEL ON THE MARKET SIDE OF THE CONTINUUM

74. Economic Systems Pure Market Pure Command Iran 45% Saudi Arabia 64% Israel 68%

75. EQ WHAT IS VOLUNTARY TRADE?

76. STANDARD SS7E6 – THE STUDENT WILL EXPLAIN HOW VOLUNTARY TRADE BENEFITS BUYERS AND SELLERS IN SOUTHWEST ASIA (MIDDLE EAST)

77. WHAT IS VOLUNTARY TRADE? MAY BE THE MOST BASIC OF ECONOMIC THEORY VT IS TRADE THAT OCCURS BECAUSE IT BENEFITS THE PARTIES THAT ARE INVOLVED

78. EQ – WHAT IS SPECIALIZATION AND HOW DOES IT HELP TRADE?

79. A.EXPLAIN HOW SPECIALIZATION ENCOURAGES TRADE BETWEEN COUNTRIES. CRCT PREP 111

80. WHAT IS SPECIALIZATION? SPECIALIZATION OCCURS WHEN ONE NATION CAN PRODUCE A GOOD OR SERVICE AT A LOWER OPPORTUNITY COST THAN ANOTHER NATION. MIDDLE EAST-CAN PRODUCE OIL CHEAPER THAN THE U.S. THE U.S. CAN PRODUCE COAL CHEAPER THAN EUROPEAN NATIONS

81. WHAT ARE THE POTENTIAL PROBLEMS OF OVER- SPECIALIZATION? FOR EXAMPLE ONE CROP? ONE PRODUCT? IF THAT CROP OR PRODUCT FAILS SO DOES THAT NATIONS ECONOMY THERE IS A RISK WHEN AN ECONOMY LACKS DIVERSIFICATION (MANY DIFFERENT INDUSTRIES AND CROPS)

82. WHAT IS GOING TO HAPPEN TO THE OIL PRODUCING COUNTRIES OF THE MIDDLE EAST WHEN AN ALTERNATIVE FORM OF ENERGY IS DEVELOPED? IF THESE COUNTRIES DO NOT DIVERSIFY THEIR ECONOMIES – THESE COUNTRIES WILL FAIL

83. LOOK AT THE LAND USE AND RESOURCES MAP ON PAGE 77 AND 169. WHY MIGHT TRADE HAPPEN BETWEEN SAUDI ARABIA AND SOUTH AFRICA? SAUDI ARABIA MAY WANT GOLD AND SOUTH AFRICA MAY NEED TO IMPORT OIL

84. WHY MIGHT THE UNITED STATES TRADE FOOD GROWN IN THE U.S. TO SAUDI ARABIA? THE TRADE MAY BE FOOD FOR OIL

85. WHAT IS OPPORTUNITY COST? The cost of passing up the next best choice when making a decision. For example, if an asset such as capital is used for one purpose, the opportunity cost is the value of the next best purpose the asset could have been used for.costchoicedecision assetcapitalvalue

86. WHY COUNTRIES ENGAGE IN TRADE? EACH COUNTRY SPECIALIZES IN SOMETHING THE OTHER COUNTRY NEEDS AND PRODUCES IT AT A LOWER OPPORTUNITY COST

87. SS7E7C. THE STUDENT WILL DESCRIBE FACTORS THAT INFLUENCE ECONOMIC GROWTH AND EXAMINE THEIR PRESENCE OR ABSENCE IN ISRAEL, SAUDI ARABIA, AND IRAN.

88. SS7E7C – EXPLAIN THE ROLE OF OIL IN THESE COUNTRIES. (ISRAEL, SAUDI ARABIA, AND IRAN) CRCT PREP 117- 119

89. WHY ARE OIL AND GAS VALUABLE NATURAL RESOURCES? THESE NATURAL RESOURCES ARE NECESSARY TO DRIVE THE WORLD’S INDUSTRIAL NATIONS STRATIGIC RESOURCES

90. WHAT PERCENTAGE OF THE OIL THAT THE U.S. USES IS IMPORTED? 50%

91. HOW DOES IT BENEFIT SAUDI ARABIA AND IRAN TO BELONG TO OPEC? OPEC MONITORS THE PRICE OF OIL AND KEEPS THAT PRICE HIGH

92. B. COMPARE AND CONTRAST DIFFERENT TYPES OF TRADE BARRIERS SUCH AS TARIFFS, QUOTAS, AND EMBARGOS. EQ - LIST AND EXPLAIN DIFFERERENT TYPES OF TRADE BARRIERS? CRCT - 112

93. WHAT IS A TRADE BARRIER? A TRADE BARRIER IS ANY THING THAT HINDERS TRADE TRADE BARRIER CAN BE PHYSICAL, ECONOMIC, OR POLITICAL. ETC

94. NAME A PHYSICAL TRADE BARRIER? MOUNTAINS DESERTS RAINFORESTS ETC. THESE LANDSCAPES MAKE IT DIFFICULT TO TRADE

95. LIST THE ECONOMIC OR FINANCIAL TRADE BARRIERS. TARIFFS – TAX ON IMPORTS OR EXPORTS (SUVS) QUOTAS – LIMIT ON THE AMOUNT OR QUANTITY THAT CAN BE IMPORTED OR EXPORTED (LUMBER) EMBARGO – GOVERNMENT ORDER PROHIBITING TRADE WITH ANOTHER NATION – (IRAQ, CUBA)

96. THE UNITED STATES HAS BANNED IMPORTING PRODUCTS MADE IN CUBA. THIS IS AN EXAMPLE OF WHAT TYPE OF TRADE BARRIER? EMBARGO

97. IRAQ IGNORED THE UNITED NATIONS REQUEST TO ALLOW U.N. INSPECTORS TO SEARCH FOR WMD’S, THE UN STOPPED TRADE WITH IRAQ EXCEPT FOR FOOD AND MEDICINE. THIS IS AN EXAMPLE OF AN ……. EMBARGO

98. TO HELP DOMESTIC CAR MANUFACTURERS, THE GOVERNMENT PUTS A TAX ON IMPORTED CARS, WHAT TYPE OF TRADE BARRIER IS THIS? TARIFF

99. A GOVERNMENT HAS PUT A LIMIT ON THE AMOUNT OF LUMBER THAT CAN BE SOLD TO FOREIGN NATIONS, WHAT TYPE OF TRADE BARRIER IS THIS? QUOTA

100. IN 1973, OPEC NATIONS DECIDED TO PUNISH THE UNITED STATES FOR THEIR SUPPORT OF ISRAEL, THEY STOPPED SHIPPING OIL TO THE U.S., THIS IS AN EXAMPLE OF … EMBARGO

101. EQ – WHAT IS THE ROLE OF OPEC IN REGARD TO THE WORLD’S OIL SUPPLY?

102. C. EXPLAIN THE PRIMARY FUNCTION OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES (OPEC) CRCT PREP 113

103. OPEC CONTROLS THE PRICE OF OIL BY CONTROLING THE AMOUNT (SUPPLY) OF OIL ON THE MARKET. OPEC IS USING THE ECONOMIC PRINCIPLES OF SUPPLY AND DEMAND TO CONTROL THE PRICE OF OIL.

104. D. EXPLAIN WHY INTERNATIONAL TRADE REQUIRES A SYSTEM FOR EXCHANGING CURRENCIES BETWEEN NATIONS. CRCT 114

105. CURRENCY EXCHANGES PROVIDE A PROCEDURE FOR DETERMINING THE VALUE OF ONE COUNTRY’S CURRENCY IN TERMS OF ANOTHER COUNTRY’S CURRENCY. WITHOUT CURRENCY EXCHANGE INTERNATIONAL TRADE WOULD BE DIFFICULT.

106. WHY IS IT IMPORTANT FOR NATIONS TO HAVE A SYSTEM TO CONVERT FROM ONE CURRENCY TO ANOTHER? THIS PROCESS MAKES IF POSSIBLE TO BUY AND SELL GOODS BETWEEN NATIONS WITH DIFFERENT TYPES OF MONEY.

107. 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? A. TO RESTRICT TRADE WITH IRAQ UNTIL THEY MET UN REQUIREMENTS B. TO INCREASE THE COST OF IRAQI PRODUCTS TO HELP IRAQ’S ECONOMY C. TO PROTECT IRAQ’S DOMESTIC INDUSTRY SO IT WOULD GROW AFTER THE WAR D. TO CONTROL THE IRAQI ECONOMY AFTER THE WAR

108. OIL IS THE MAJOR EXPORT OF SAUDI ARABIA TO MANY DIFFERENT COUNTRIES. SAUDI ARABIA’S INTERNATIONAL TRADE IN OIL IS MADE MUCH EASIER BY A. USE IF A WORLD WIDE CURRENCY B. A SYSTEM TO EXCHANGE CURRENCY BETWEEN COUNTRIES C. TRADING ONLY WITH COUNTRIES THAT HAVE THE SAME CURRENCY D. TRADE OF OIL FOR OTHER NEEDED GOODS SO CURRENCY IS NOT NEEDED.

109. WHAT IS A TRADE BARRIERS? A TRADE BARRIERS IS ANYTHING THAT RESTRICTS TRADE. TRADE BARRIERS CAN BE PHYSICAL, ECONOMIC, OR POLITICAL.

110. WHAT IS A PHYSICAL TRADE BARRIER. A PHYSICAL TRADE BARRIER IS A TYPE OF LANDFORM THAT MAKES TRADE DIFFICULT. MOUNTAINS, DESERTS, RAINFORESTS, ETC.

111. BESIDES THE PHYSICAL TRADE BARRIERS, WHAT ARE THE DIFFERENT TYPES OF TRADE BARRIERS? TARIFFS QUOTAS EMBARGOS

112. WHAT IS A TARIFF? A TARIFF IS A TAX ON A GOOD BEING IMPORTED OR EXPORTED A PROTECTIVE TARIFF IS A TAX ON A GOOD THAT IS BEING IMPORTED BECAUSE THE GOVERNMENT WANTS TO PROTECT A DOMESTIC INDUSTRY FROM COMPETITION EX. TAX ON IMPORTED SUV’S

113. WHAT IS A QUOTA? A QUOTA IS A LIMIT ON THE AMOUNT OR QUANTITY OF GOOD THAT CAN BE IMPORTED OR EXPORTED.

114. THE UNITED STATES HAS QUOTA APPLIED TO EXPORTED LUMBER. IF TRADE STARTS UP WITH CUBA, THERE WILL PROBABLY BE A QUOTA PLACED ON IMPORTED SUGAR.

115. WHAT IS AN EMBARGO? AN EMBARGO OCCURS WHEN A ORGANIZATION PROHIBITS TRADE WITH A COUNTRY. A government prohibition against the shipment of certain products to a particular country for economic or political reasons.governmentprohibition shipmentproductscountryeconomic

116. AFTER THE PERSIAN GULF, AGAINST WHAT COUNTRY DID THE U.N. PLACE AN EMBARGO? A. KUWAIT B. IRAN C. IRAQ

117. C. EXPLAIN THE PRIMARY FUNCTION OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES (OPEC). EQ – WHAT IS THE ROLE OF OPEC?

118. WHAT DOES O-P-E-C STAND FOR? ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES

119. WHAT ROLE DOES OPEC PLAY IN THE OIL MARKET? OPEC CONTROLS THE PRICE OF OIL BY CONTROLLING THE SUPPLY OF OIL ON THE MARKET SUPPLY AND DEMAND

120. QUIZ GET PAPER OUT PUT YOUR NAME AT THE TOP

121. ECONOMICS QUIZ NAME ________________

122. 1. ISRAEL PRODUCES ALL OF THE FOLLOWING EXCEPT? A. HIGH TECH MANUFACTURING B. FINANCIAL SERVICES C. AGRICULTURAL PRODUCTS D. PETROLEUM PRODUCTS

123. 2. WHO OWNS THE BUSINESSES IN ISRAEL? A. ISRAEL HAS SUBSTANTIAL GOVERNMENT OWNERSHIP BUT IS GRADUALLY PRIVATIZING B. ALL BUSINESSES ARE OWNED PRIVATELY

124. 3. SAUDI ARABIA IS THE WORLD’S LEADING PRODUCER OF _____

125. 4. WHAT PERCENTAGE OF THE OIL INDUSTRY IS OPERATED BY THE SAUDI GOVERNMENT? A. 40% B. 50% C. 75% D. 95%

126. 5. TURKEY’S ECONOMY IS MOVING FROM A GOVERNMENT DIRECTED ECONOMY TO MORE PRIVATE ENTERPRISES, THIS MAKES TURKEY’S ECONOMY A … ECONOMY. A. COMMAND B. MIXED C MARKET

127. 6. THIS OCCURS WHEN A NATION CAN PRODUCE A GOOD OR SERVICE AT A LOWER OPPORTUNITY COST THAN ANOTHER NATION. A. SPECIALIZATION B. TRADE DEFICIT C. VOLUNTARY TRADE

128. 7. WHEN A COUNTRY HAS MANY DIFFERENT INDUSTRIES, THAT COUNTRY IS SAID TO BE A. SPECIALIZED B. DIVERSIFIED C. INCORPORATED

129. 8. WHEN A COUNTRY LIMITS THE AMOUNT OF A GOOD THAT IS IMPORTED OR EXPORTED IT IS APPLYING A A. EMBARGO B. QUOTA C. TARIFF

130. 9. WHEN A COUNTRY APPLY A TAX TO AN IMPORT OR EXPORT THIS IS CALLED A.. A. TRADE EMBARGO B. QUOTA C. TARIFF

131. 10. FOR THE PAST 60+ YEARS, THE UNITED STATES GOVERNMENT HAS PROHIBITED TRADE WITH CUBA, THIS IS AN EXAMPLE OF A/AN …. A. TARIFF B. EMBARGO C. QUOTA

132. 11. AFTER THE PERSIAN GULF WAR THE U.N. PROHIBITED TRADE WITH IRAQ. WHY? A. UNTIL IRAQ MET UN REQUIREMENTS B. TO INCREASE THE COST OF IRAQ’S PRODUCTS C. TO PROTECT IRAQ’S INDUSTRIES D. TO CONTROL IRAQ’S ECONOMY AFTER THE WAR

133. 12. HOW DOES OPEC CONTROL THE PRICE OF OIL? A. BY CONTROLLING DEMAND B. BY CONTROLLING OIL TANKERS C. BY CONTROLLING THE SUPPLY OF OIL ON THE MARKET

134. 13. ISRAEL SPECIALIZES IN A. MEDICAL TECHNOLOGIES B. INDUSTRIAL TECHNOLOGIES C. SCIENTIFIC TECHNOLOGIES D. AGRICULTURAL TECHNOLOGIES

135. 14. WHAT HAPPENS TO THE PRICE OF GASOLINE WHEN OPEC DECIDE TO LIMIT (CUT) PRODUCTION A. PRICES RISE B. PRICES DROP C. PRICES STAY THE SAME D. OIL STOPS BEING SOLD

136. 15. WHY IS CURRENCY EXCHANGE IMPORTANT? A. CONVERTING TO DIFFERENT CURRENCIES MAKES GOODS COST LESS B. BANKS ARE NOT ABLE TO HANDLE DIFFERENT KINDS OF CURRENCIES C. THIS MAKES IT POSSIBLE TO BUY AND SELL GOODS BETWEEN NATIONS WITH DIFFERENT TYPES OF MONEY

137. CURRENCY EXCHANGES PROVIDE A PROCEDURE FOR DETERMINING THE VALUE OF ONE COUNTRY’S CURRENCY IN TERMS OF ANOTHER COUNTRY’S CURRENCY. WITHOUT CURRENCY EXCHANGE INTERNATIONAL TRADE WOULD BE DIFFICULT.

138. WHY IS IT IMPORTANT FOR NATIONS TO HAVE A SYSTEM TO CONVERT FROM ONE CURRENCY TO ANOTHER? THIS PROCESS MAKES IF POSSIBLE TO BUY AND SELL GOODS BETWEEN NATIONS WITH DIFFERENT TYPES OF MONEY.

139. 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? A. TO RESTRICT TRADE WITH IRAQ UNTIL THEY MET UN REQUIREMENTS B. TO INCREASE THE COST OF IRAQI PRODUCTS TO HELP IRAQ’S ECONOMY C. TO PROTECT IRAQ’S DOMESTIC INDUSTRY SO IT WOULD GROW AFTER THE WAR D. TO CONTROL THE IRAQI ECONOMY AFTER THE WAR

140. OIL IS THE MAJOR EXPORT OF SAUDI ARABIA TO MANY DIFFERENT COUNTRIES. SAUDI ARABIA’S INTERNATIONAL TRADE IN OIL IS MADE MUCH EASIER BY A. USE IF A WORLD WIDE CURRENCY B. A SYSTEM TO EXCHANGE CURRENCY BETWEEN COUNTRIES C. TRADING ONLY WITH COUNTRIES THAT HAVE THE SAME CURRENCY D. TRADE OF OIL FOR OTHER NEEDED GOODS SO CURRENCY IS NOT NEEDED.

141. NEW QUIZ STARTS HERE

142. SS7E7 THE STUDENT WILL DESCRIBE FACTORS THAT INFLUENCE ECONOMIC GROWTH AND EXAMINE THEIR PRESENCE OR ABSENCE IN ISRAEL, SAUDI ARABIA, AND IRAN. CRCT – 109-110

143. SS7E7B. EXPLAIN THE RELATIONSHIP BETWEEN INVESTMENT IN CAPITAL (FACTORIES, MACHINERY, AND TECHNOLOGY AND GROSS DOMESTIC PRODUCT GDP. CRCT PREP – 116-117

144. FACTORIES, MACHINERY, COMPUTERS ETC. ARE EXAMPLES OF …. CAPITAL GOODS

145. SS7E7A – EXPLAIN THE RELATIONSHIP BETWEEN INVESTMENT IN HUMAN CAPITAL (EDUCATION AND TRAINING) AND GROSS DOMESTIC PRODUCT (GDP) CRCT PREP – 115-116

146. THE SKILLS AND EDUCATION THAT WORKERS HAVE IS CALLED …… HUMAN CAPITAL

147. WHAT IS DETERMINED WHEN WE CALCULATE THE TOTAL VALUE OF GOODS AND SERVICES PRODUCED BY A COUNTRY IN A SINGLE YEAR? GDP – GROSS DOMESTIC PRODUCT

148. WHEN WE CALCULATE THE TOTAL AMOUNT OF GOODS AND SERVICES PRODUCED IN A COUNTRY AND DIVIDE THAT NUMBER BY THE TOTAL POPULATION, WHAT DOES THAT NUMBER REPRESENT? GDP PER CAPITA

149. ISRAEL LIT. RATE 96.9% REAL ECONOMIC GROWTH RATE IN 2007 WAS 4.8% REAL ECONOMIC GROWTH RATE IS THE PERCENT THE GDP INCREASED OVER THE PREVIOUS YEAR. ISRAEL’S LIT. RATE UP 85% FROM 1980

150. SAUDI ARABIA LITERACY RATE IS 78.8% REAL ECONOMIC GROWTH RATE IN 2007 WAS 6.1% SAUDI ARABIA’S LIT. RATE IS UP 48.5% FROM 1980

151. IRAN LIT. RATE 79% REAL ECONOMIC GROWTH RATE 2007 WAS 6.2% IRAN’S LITERACY RATE IS UP FROM 50% IN 1980

152. SS7E7B. EXPLAIN THE RELATIONSHIP BETWEEN INVESTMENT IN CAPITAL (FACTORIES, MACHINERY, AND TECHNOLOGY) AND GDP. CRCT 116-117

153. INVESTMENT IN CAPITAL GOODS INCREASES PRODUCTION AND OPENS EXPORTATION OF GOODS. INVESTMENT IN CAPITAL GOODS TENDS TO INCREASE GDP.

154. WHAT IS GDP? GROSS DOMESTIC PRODUCT GDP is the market value of all final goods and services made within the borders of a nation in a year.

155. WHAT IS REAL GROWTH RATE GDP? economic growth rate - The pace at which economic growth increases during a given interval.economic growth rate

156. ISRAEL CAPITAL INVESTMENT-18% OF GDP REAL GROWTH RATE-4.8%

157. SAUDI ARABIA CAPITAL INVESTMENT-19.5% OF GDP REAL GROWTH RATE 6.1%

158. IRAN CAPITAL INVESTMENT – 27.7% GDP REAL GRWOTH RATE 6.2%

159. C. EXPLAIN THE ROLE OF OIL IN THESE COUNTRIES. CRCT 117-119

160. THE IMPACT OF THE NATURAL RESOURCES OF OIL INCREASE THE GDP OF A COUNTRY THAT POSSESSES THAT OIL.

161. ISRAEL GDP-$170 BILLION (2008) OIL – NO SIGNIFICANT RESERVES

162. SAUDI ARABIA GDP - $527 BILLION 2008 OIL – LARGEST PRODUCER AND EXPORTER OF OIL IN THE WORLD. 90% OF GOVERNMENT REVENUES COME FROM THE OIL INDUSTRY.

163. IRAN GDP - $852.6 BILLION 2008 OIL THE ECONOMY RELIES PRIMARILY ON THE OIL INDUSTRY. 80% OF EXPORTS ARE PETROLEUM AND PETROLEUM PRODUCTS.

164. SS7E7D. DESCRIBE THE ROLE OF AN ENTREPRENEUR. CRCT PREP - 119 EQ – WHAT IS THE IMPORTANCE OF AN ENTREPRENEUR?

165. WHAT IS AN ENTREPRENEUR? An entrepreneur is a person who has possession of an enterprise, or venture, and assumes significant accountability for the inherent risks and the outcome.enterpriseventure

166. A PERSON THAT IS WILLING TO RISK HIS MONEY, TIME, EFFORT ETC. TO START A BUSINESS IS CALLED AN … ENTREPRENEUR – RISK TAKER ENTREPRENEURSHIP IS ONE OF THE FOUR FACTORS OF PRODUCTION THE OTHER THREE FACTORS ARE LAND, LABOR, AND CAPITAL

167. ENTREPRENEURS ARE VITAL TO MAINTAINING AND DEVELOPING ECONOMIES. (INNOVATIONS, IDEAS, ETC.)

168. ISRAEL AND ENTREPRENEURSHIP – ISRAEL IS MODERATELY OPEN TO ENTRPRENEURSHIP. IT IS EASY TO START A BUSINESS, BUT IT TAKES LONGER THAN THE WORLD AVERAGE. IN ISRAEL, PRIVATE PROPERTY IS WELL PROTECTED BY LAW. FOREIGN INVESTMENT IS ENCOURAGED BUT LIMITED IN SOME CIRCUMSTANCES.

169. SAUDI ARABIA HAS BECOME INCREASINGLY OPEN TO ENTREPRENEURSHIP. STARTING A BUSINESS IS MADE EASY BY THE GOVERNMENT, COMPARED TO THE WORLD AVERAGE. PRIVATE PROPERTY IS PROTECTED VERY WELL. FOREIGN INVESTMENT IS ENCOURAGED ALTHOUGH SOME MUST HAVE SAUDI PARTNERS.

170. IRAN IS NOT VERY OPEN TO ENTREPRENEURSHIP. IRANS ECONOMY IS CENTRALIZED AND REGULATIONS MAKE IT DIFFICULT FOR INDIVIDUALS TO OPEN BUSINESSES. THERE IS LITTLE PROTECTION OF PRIVATE PROPERTY RIGHTS, AND THE GOVERNMENT ALLOWS VERY LITTLE FOREIGN INVESTMENT.

171. SAUDI ARABIA’S LITERACY RATE INCREASED FROM APPROX. 48% in 1980 TO OVER 78% IN 2009. WHY IS THIS IMPORTANT FOR THE SAUDI ARABIAN ECONOMY? A. IT HAS HELPED INCREASE FOREIGN TRADE B. IT CAUSED A DECREASE IN FOREIGN DEBT C. IT HELPED TO INCREASE THE COUTRY’S GDP D. IT RESULTED IN FEWER JOBS FOR SAUDI CITIZENS

172. IN IRAN THE ECON. IS HIGHLY CENTRALIZED AND REGULATIIONS HINDER PRIVATE INDIVIDUALS FROM OPERATING BUSINESSES. SAUDI ARABIA HAS MADE OWNING A BUSINESS EASY. WHAT IS THE IMPACT OF ENTREPRENEURSHIP? A. ENTRE. ARE NOT AFFECTED BY GOV. REGULATIONS B. IT LIMITS THE ROLE OF ENTRE. IN BOTH COUNTRIES C. ENTRE. WILL HELP IN SAUDI ARABIA BUT NOT IN IRAN D. BOTH IRAN AND SAUDI ARABIA WILL BENEFIT FROM THE EFFORTS OF ENTRE.