The Organization of Petroleum Exporting Countries (OPEC) controls about 75 percent of the world's proven oil reserves. Economists refer to OPEC as a cartel because
A) it is a group of firms that collude to restrict output to increase prices and profits.
B) OPEC is a monopoly, but it is located outside of the boundaries of any one country. This is the definition of a cartel.
C) this is the term economists use to describe an oligopoly that sells a standardized product, such as oil, rather than a differentiated product, such as automobiles.
D) this is the term used for an oligopoly that is controlled by national governments rather than private firms.
A
You might also like to view...
The monetary policy target the Federal Reserve focuses primarily on today is
A) M1. B) M2. C) the interest rate. D) the inflation rate. E) the unemployment rate.
The statement "other things being equal" in the law of demand means all of the following remain constant EXCEPT
A) consumer income. B) the price of the good concerned in the law of demand. C) the prices of substitutes. D) tastes and preferences.
Assume that the expectation of a recession next year causes business investments and household consumption to fall, as well as the financing to support it. If the nation has low mobility international capital markets and a fixed exchange rate system, what happens to real GDP and the nominal value of the domestic currency in the context of the Three-Sector-Model? a. Real GDP falls and nominal
value of the domestic currency remains the same. b. Real GDP and nominal value of the domestic currency remain the same. c. Real GDP falls and nominal value of the domestic currency rises. d. Real GDP falls and nominal value of the domestic currency falls. e. There is not enough information to determine what happens to these two macroeconomic variables.
In a market economy,
a. households decide which firms to work for and what to buy with their incomes. b. firms decide whom to hire and what to make. c. a central planner makes decisions about production and consumption. d. Both a and b are correct.