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JAMB Economics 2000 Question 50

Question 50

International Economic Organisations

Being a member of the OPEC, Nigeria is in a favourable position to

  1. A.export her crude oil
  2. B.control world crude oil prices
  3. C.reap the benefit of a cartel
  4. D.borrow money from members.
Show the answer and explanation

Answer: C (reap the benefit of a cartel)

Explanation

OPEC is a cartel; as a member Nigeria gains from the higher, more stable prices that joint output control brings.