When the Nations That Constitute the Organization of the Petroleum

question 137

Multiple Choice

When the nations that constitute the Organization of the 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:

Leisure

Time available for ease, relaxation, and activities one chooses to engage in beyond compulsory activities like work or chores.

Consumption

The use of goods and services by households or individuals, constituting one of the primary components of economic activity.

Nonlabor Income

Income received from sources other than employment, such as investments, pensions, or gifts.

Wage Rate

The amount of money that an employee is paid per unit of time, such as an hour, often analyzed in labor economics.