WAEC Economics 2010 Question 47

Question 47

International Economic Organisations

In order to stabilize oil price in the world market, there is the need for OPEC members to

  1. A.always have budget deficit.
  2. B.encourage competition among themselves.
  3. C.adhere to production quotas.
  4. D.fix the prices of non-oil products.
Show the answer and explanation

Answer: C (adhere to production quotas.)

Explanation

Keeping to agreed output quotas stops oversupply and keeps oil prices stable.