Which of the Following Was Not a Reason OPEC Failed

question 73

Multiple Choice

Which of the following was not a reason OPEC failed to keep the price of oil high?

• A)Over the long run, producers of oil outside of OPEC responded to higher prices by increasing oil exploration and by building new extraction capacity.
• B)Consumers responded to higher prices with greater conservation.
• C)Consumers replaced old inefficient cars with newer efficient ones.
• D)The agreement OPEC members signed allowed each country to produce as much oil as each wanted.

Analyze the implications of the Condorcet paradox and Arrow's impossibility theorem on social choice theory.

Distinguish between hidden actions and hidden characteristics in the context of asymmetric information.

Understand the key principles and theories of political economy, including the median voter theorem, Arrow's impossibility theorem, and the concepts of majority rule and unanimity.

Identify and describe the practical application and implications of voting systems such as Borda count and majority rule in various contexts.

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Definitions:

Majority of Demand

Typically refers to the largest portion of demand for a product or service, usually indicating the most common or frequent customer request or need.

Tailored Postponement

A supply chain strategy that delays the final production or distribution of a product until customer requirements are fully understood.

Production

The process of creating goods and services through the combination of labor, materials, technologies, and strategies.

Demand

the quantity of a good or service that consumers are willing and able to purchase at different prices at a given time.