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:

Taxable Income

The amount of an individual's or organization's income used to determine how much tax is owed, minus deductions and exemptions.

Federal Taxes

Taxes imposed by the federal government on income, property, and consumption to fund national programs and services.

Gross Income

The total earnings received before any deductions such as taxes, benefits, and expenses.

Taxable Income

The portion of an individual's or entity's income that is subject to taxation by governing authorities.