ECONOMICS
TECHNOLOGY
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Mixed-because the government has little involvement in the production of oil
|
|
|
Command-because the government has control over the main industry in the country
|
|
|
Market-because people are in charge of the oil production
|
|
|
Free-because people are free to buy oil from the government
|
Detailed explanation-1: -95% of the oil is government controlled. Government control of a resource means that resource or industry is in a command type economic system. Over 95% of the oil in Saudi Arabia is controlled by the government.
Detailed explanation-2: -How have the nations of the Arabian peninsula used oil profits to develop new industry? They used oil profits to build infrastructure and to bring in foreign workers to help build new industries such as banking, steel and petrochemical industries.
Detailed explanation-3: -While Saudi Arabia’s economic base continues to be dominated by oil, the Kingdom has taken steps to diversify the economy. Today, industrial products make up more than 90 percent of the Kingdom’s non-oil exports.
Detailed explanation-4: -Saudi Arabia’s command economy is petroleum-based; roughly 75% of budget revenues and 90% of export earnings come from the oil industry. It is strongly dependent on foreign workers with about 80% of those employed in the private sector being non-Saudi.