ECONOMICS (CBSE/UGC NET)

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ECONOMICS

ECONOMIC SYSTEMS

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Many major industries in Saudi Arabia have significant government involvement or are government controlled. Based solely on this information, which type of economic system would BEST describe Saudi Arabia?
A
market
B
federalist
C
traditional
D
command
Explanation: 

Detailed explanation-1: -Petroleum is an integral part of the Saudi economy; Saudi Arabia is the world’s largest producer and exporter of oil.

Detailed explanation-2: -Saudi Arabia is an absolute monarchy, although, according to the Basic Law of Saudi Arabia, Saudi Arabia’s de facto constitution, adopted by royal decree in 1992, the king must comply with Sharia (that is, Islamic law) and the Qur’an.

Detailed explanation-3: -Petroleum. The economy of Saudi Arabia is dominated by petroleum and its associated industries. In terms of oil reserves, Saudi Arabia ranks first internationally, with about one-fifth of the world’s known reserves.

Detailed explanation-4: -Answer and Explanation: While Saudi Arabia experiences government control of their economy in a number of ways, it remains a primarily market economy.

There is 1 question to complete.
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