NFMS Economics SW ASIA test 7th
Terms in this set (48)
In a traditional economy, how are economic decisions made
customs and habits
How much government or individual control is given in a country's economic system
Who makes decisions in a market economy?
Per capita income
The total national income divided by the number of people in the nation
A person who starts up and takes on the risk of a business
A PERSON WHO GIVES MONEY TO A COMPANY WITH THE HOPE OF MAKING MONEY LATER
A special tax added to imported goods to raise the price, thereby protecting American businesses and workers from foreign competition.
makes it possibe to buy and sell goods between nations with different types of money
(gross domestic product) or the total value of the goods and services produced in a country during a given time period
Goods and services are produced in better quality, quantity and speed when people focus on producing a few things instead of making everything they want by themselves.
Example: Israel lacks farmland and natural resources but has an economy based on technology, they specialize in technology.
An economy in which production is based on customs and traditions and economic roles are typically passed down from one generation to the next.
EXAMPLE: (If your great grandfather raised chickens, then your grandfather, than your father, and now you raise chickens. You then trade your chickens for things you need to live)
An economic system in which the government controls a country's economy.
EXAMPLE: The government tells 1)what to produce, 2) how to produce, and 3) for whom to produce? with little to no input from the people.
Taxes, quotas, embargos and other restrictions on goods entering or leaving a country. (on imports or exports)
Having a large amount of money or property
What is a economic system
The way in which a nation uses its resources to satisfy its peoples needs and wants.
An arrangement to receive cash, goods, or services now and pay for them in the future.
Why would a county impose a tariff?
To ecourage people to buy stuff made in the country they live in.
A tax on foreign goods brought into a country. An official schedule of taxes imposed by a government on imports or exports
A problem with traditional economy?
people need things they are unable to get, They do not have the lastest technology.
Mix economies run?
between a command and maket economies
A government order imposing a trade barrier
stopping trade with another country
In a traditional economy how are economic decision made?
Custom and habit
The economic question is?
What to produce? How to produce? For whom to produce?
What kind of economic system does Israel have?
mixed- Israel has been consistently rated a "moderately free" economy.
Combined knowledge, skills and experience of a company's employees
Investing in human capital
Improves productivity by increasing their skills, abilities, health, profits (increasing GDP) and motivation
What are Saudi Arabia's natural resources and what do they specialize in?
Oil and gas
An international oil cartel originally formed in 1960. Represents the majority of all oil produced in the world. Attempts to limit production to raise prices. It's long name is the Organization of Petroleum Exporting Countries.
Why was the OPEC created?
To regulate the price and supply of oil.
The price at which one currency is exchanged for another.
Any form of money being used as a medium of exchange
Why does the countries of the world need a currency rate?
To make is possible for nation to buy and sell goods and services to each other with different types of money.
Why would Saudi Arabia make a large investment in human capital?
The technology in the oil industry is very high tech and complicated, The Saudi's specialize in the oil technology and need to keep their worker educated.
Nonrenewable natural resources
a natural resources that cannot be replaced
all human-made goods that are used to produce other goods and services; tools and buildings, including computers, lights, toilets, sinks, floors ect....
Idea that government should play as small a role as possible in economic affairs.
Why are oil and gas such valuable resources?
Because the world is industrialized and needs them to function. Modern and technology advanced countries need oil for industries and as energy.
Buildings, machines, technology, and tools needed to produce goods and services. Items that help a business grow and function
- the scale of economics from command to market, a way of representing economic systems with a 100% command economy on the far left and a 100% market economy on the far right, Where does a county fall on the scale?
What is Turkey's goverment
It is a democracy led by a president and prime minister; its constitution forbids discrimination and guarantees important human rights.
What is the problem with a traditional economy?
People need things and are unable to barter for the goods.
Why might a government set an embargo?
(1) manage imports/exports (2) Inflation control (3) Encourage growth (4) Reduce negative externalities (5) Encourage / Redistribute Employment
What are the causes for economic growth?
Investment in Capital growth, Investment in human capital, Role of entrepreneurs, Higher standard of living.
The US found out a company they trade with in China has been using lead paint on toys they trade, What can the US do to stop the use of lead paint.
What is the exchanging currencies
Trade- Money between nations. Money from one county must be converted into currency to pay for goods and services for that county.
A Realestate agent, A sports trainer, and mortgage broker are?
Sevives industry workers.
Saudi Arabia's oil industry has brought them much wealth, this has enabled them to?
Puchase high technology items and sevices for farming.
What are the similarities and differences between the economic systems in Israel, Saudi Arabia, and Turkey?
All three are mixed economies, but Israel's system is based on technology. Although Turkey's government had tight control of the economy, it's loosening up some. Saudi Arabia's economy is based on oil.
What is the relationship between investment in capital (factories, machinery, and technology) and gross domestic product (GDP)?
Spending money on technology makes sure your business is successful, which brings in more money