When the Nations That Constitute the Organization of Petroleum Exporting

question 41

Multiple Choice

When the nations that constitute the Organization of Petroleum Exporting Countries (OPEC) restrict the supply of oil to increase their profits,the oil market:

• A)achieves an efficient outcome because profits increase.
• B)achieves an equitable outcome because the nations with oil resources receive the profits commensurate with that resource.
• C)fails because there is no longer an efficient allocation of resources.
• D)fails because there is no longer an equitable allocation of resources.

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Definitions:

Center

The middle point of a shape, object, or group of points, often equidistant from all outer edges or surfaces.

Radius

The distance from the center to the circumference of a circle or sphere.

Parabola

A symmetrical, open curve that represents the graph of a quadratic function, defined as the set of all points equidistant from a point called the focus and a fixed line called the directrix.

Focus

A specific point used in the definition of conic sections, such as ellipses and hyperbolas, that helps determine their shape.