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.

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Definitions:

Options Pricing Model

A mathematical model used to determine the theoretical value of options, taking into account factors like the stock price, strike price, and volatility.

Compensatory Stock Option Plan

A benefit plan for employees which gives them the right to purchase company shares at a future date at a price established when the option is granted.

Employee Turnover

The rate at which employees leave a company and are replaced by new employees over a particular period.

Compensation Expense

Costs incurred by an employer to pay employees, including wages, benefits, and bonuses.