This document provides an overview of the economic systems in Israel, Saudi Arabia, Turkey, and Iran. It explains that Israel has built an advanced technology-based economy to make up for a lack of natural resources. Saudi Arabia heavily controls the oil industry and uses oil profits to invest in modern technologies and services. Iran has significant oil wealth but it is not widely shared, and the country is moving toward a more mixed economy. Turkey's economy features some government control over key industries but private ownership is increasing with legal reforms. The document concludes with a short quiz on these different economic models in the Middle East.

1. Economics in the
Middle East
SS7E5: Compare and contrast the
economic systems in Israel, Saudi
Arabia, Turkey, and Iran

2. Economics Quick Review
What are the 3 basic economic questions that
must be answered?
What goods and services will be produced?
How will these goods and services be produced?
Who uses the goods and services that are
produced?
1.

3. 2. In a traditional economy, how are
economic decisions made?
a. Custom and habit
b. Government planners
c. Consumers and the market
d. Combination of consumers and
government planners

4. 3. In a command economy, how are
economic decisions made?
a. Custom and habit
b. Government planners
c. Consumers and the market
d. Combination of consumers and
government planners

5. 4.In a market economy, who makes the
economic decisions?
a. Farmers
b. Custom and habit
c. Government planners
d. Consumers

6. 5. Why are most modern economies referred to as
mixed economies?
a.
Poverty is always highest in countries with
market economies
b.
Government planners do not know how to
handle economic problems
c.
Products made by traditional economies have
no markets in the modern world.
d.
Most countries have all aspects of three
economic types at work in their economies.

7. Economies of the Middle
East
Israel- built an economy based
on advanced technology which
makes up for what they lack in
farmland and natural resources
Saudi Arabia- having rich oil
reserves allows for Saudis to
buy foreign goods and invest in
technologies to allow them to
produce goods needed

8. 

Iran- great oil wealth like Saudi Arabia,
although most Iranians do not share in the oil
wealth/money; more of mixed economy is on
the rise, because the command economy’s
poor efficiency in recent years
Turkey-least economic freedom of the 3
previous countries; airlines, railroads, telephone
and television industries are controlled by the
government, with recent loosened control
private ownership is being allowed, and laws
are being passed to support business owners.

9. Pop Quiz
1.
a.
b.
c.
d.
The economies of Israel, Saudi
Arabia, Turkey, and Iran could best
be described as
Mixed
Market
Command
traditional

10. 2. How have the Israelis made up for their
lack of natural resources?
a. They have put everyone to work and
have no unemployment.
b. They have relied primarily on farming to
keep their economy going.
c. They have developed strong technology
companies in their economy.
d. Israelis have refused to import oil, saving
huge amounts of money each year.

11. 3. Which industry does the government of
Saudi Arabia heavily control?
a. Agricultural
b. Oil
c. Technology
d. Textile manufacturing

12. 4. How has the Saudi king used the profits
from oil to help other areas of his
kingdom?
a. Money is distributed directly to all Saudi
citizens
b. The King has ended unemployment in
Saudi Arabia
c. Oil profits have paid for modern
technology and services
d. The King has let the Saudi people decide
how to invest oil profits.