4. Economics in Southwest Asia

Georgia Performance Standards



SS7E5 The student will analyze different economic systems.

a. Compare how traditional, command, and market economies answer the economic questions of (1) what to produce, (2) how to produce, and (3) for whom to produce.

b. Explain how most countries have a mixed economy located on a continuum between pure market and pure command.

c. Compare and contrast the economic systems in Israel, Saudi Arabia, and Turkey.


SS7E6 The student will explain how voluntary trade benefits buyers and sellers in Southwest Asia (Middle East).

a. Explain how specialization encourages trade between countries.

b. Compare and contrast different types of trade barriers, such as tariffs, quotas, and embargoes.

c. Explain the primary function of the Organization of Petroleum Exporting Countries (OPEC).

d. Explain why international trade requires a system for exchanging currencies between nations.


SS7E7 The student will describe factors that influence economic growth and examine their presence or absence in Israel, Saudi Arabia, and Iran.

a. Explain the relationship between investment in human capital (education and training) and gross domestic product (GDP).

b. Explain the relationship between investment in capital (factories, machinery, and technology) and gross domestic product (GDP).

c. Explain the role of oil in these countries’ economies.

d. Describe the role of entrepreneurship.