Algeria,Angola,Iran,Iraq,and Kuwait are members of the Organization of Petroleum Exporting Countries (OPEC). One of OPEC's main functions is to control oil prices by restricting production. OPEC can best be described as a(n):
A)Oligarchy
B)Cartel
C)Commodity price agreement
D)Buffer
E)Trade diversion

Question

Quizplus · Accepted Answer

OPEC is a cartel, which is an association of producers who agree to coordinate prices and control production to maximize their profits. OPEC controls about 44% of global oil production and is therefore able to influence oil prices by restricting production.

Algeria,Angola,Iran,Iraq,and Kuwait Are Members of the Organization of Petroleum Exporting