Iran Called on OPEC in November 2008 to Cut Production

question 264

Multiple Choice

Iran called on OPEC in November 2008 to cut production by a further 1 million to 1.5 million barrels per day when it meets in Cairo later this month. Why would OPEC, a cartel, restrict production?

• A) to decrease demand
• B) to increase supply
• C) to decrease quantity supplied
• D) to increase profits

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Definitions:

Social Facilitation

The enhancement of performance observed when an individual performs in the presence of others, compared to when alone.

Köhler Effect

A phenomenon observed in groups where less capable members perform better when working collectively than they would on their own, inspired by the work of Gestalt psychologist Wolfgang Köhler.

Inferior Member

In a group setting, it refers to a member perceived or deemed to be of lesser skill, contribution, or value compared to others within the group.

Group Productivity

The measure of the output or performance level of a group working together towards common objectives.