JAMB Government 1999 Question 44

Question 44

OPEC and Other International Organisations

the major strategy used by OPEC to influence oil price is by

  1. A.allocating production quotas to members
  2. B.influencing buyers at the international market to buy at high prices
  3. C.allowing member countries to produce at their discretion
  4. D.increasing the supply of the commodity
Show the answer and explanation

Answer: A (allocating production quotas to members)

Explanation

OPEC fixes how much each member may produce. Limiting supply keeps prices up.