Table: Market for Oil Suppose That Oil Is Produced by 10

question 124

Multiple Choice

Table: Market for Oil Suppose that oil is produced by 10 countries, each of which produces 10 million barrels of oil a day (MBD) for a total 100 MBD. The world price of oil at this quantity is $36 per barrel so each country earns $360 million a day. Reference: Ref 15-2 (Table: Market for Oil) Refer to the table. Suppose that these countries form a cartel and each country produces 8 MBD. If one of the cartel members cheats by secretly pushing its production back to 10 MBD rather than 8, total revenue for the cheating country would:

• A) increase from $360 million to $500 million a day.
• B) increase from $400 million to $475 million a day.
• C) decrease from $380 million to $360 million a day.
• D) remain unchanged at $400 million a day.

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Definitions:

Talented Tenth

A term popularized by W.E.B. Du Bois referring to the supposed ten percent of African Americans who could lead the race to greater advancements through higher education and intellectual achievement.

Niagara Movement

An early 20th-century African-American civil rights group advocating for political, civil, and social rights, precursor to the NAACP.

Educated Blacks

Refers to African Americans who have attained formal education, particularly during times when access to education for Blacks was severely restricted.

Social Change

Social change involves the significant alteration of social structures and cultural patterns over time, affecting institutions, behaviors, and relationships.