The OPEC oil cartel lost its market power and world oil prices fell in the 1980s because:
A) OPEC expanded its membership to include all international producers of oil.
B) world consumers boycotted OPEC oil.
C) a limit pricing strategy was pursued by some members of the cartel.
D) members began to cheat on cartel agreements.
E) the United States refused to buy oil from OPEC.
Answer: D) members began to cheat on cartel agreements.
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As a result of the financial deregulation that allowed banks to issue new types of interest-bearing checking accounts
A) people are less willing to hold M1 at a given interest rate on alternative assets. B) the demand for money M1 curve became more stable. C) the demand for money M1 curve became vertical. D) the demand for money M1 curve will shift to the right.
Charles Tiebout favors
A. people moving to local communities with others of similar tastes. B. government provision of all public goods. C. people of different tastes living in the same place. D. user taxes on public goods.
Constant returns to scale means that long-run:
A. ATC does not change as output increases. B. ATC rises and then falls as output increases. C. ATC decreases as output decreases. D. ATC increases as output increases.
In its most ideal form, a price system allows
A) firms to act in such a way that they eliminate scarcity. B) consumers to satisfy all their wants. C) resources to move from lower-valued uses to higher-valued uses through voluntary exchange. D) government policy makers to allocate resources to the uses which they consider to be in the best interests of society.