Question 31
Natural Resources and PetroleumThe main problem of the Organization of Petroleum Exporting Countries is how to
- A.prevent members from violating their quota
- B.enhance the quality of petroleum products
- C.compete with the North Sea producers
- D.ensure viable crude reserves.
Show the answer and explanation
Answer: A (prevent members from violating their quota)
Explanation
OPEC controls prices through production quotas, but members often produce above their quotas to earn more, which weakens the cartel.