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WAEC Economics 2011 Objective — Question 47

Question 47 of 50 from the West African Examinations Council (WAEC) Economics 2011 Objective paper, with the correct answer and a full explanation.

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

  • A. A. always have budget deficit
  • B. B. encourage competition among themselves
  • C. C. adhere to production quotasCorrect
  • D. D. fix the price of non-oil

Explanation

Production quotas is the quantity each member is given to supply to the market to avoid excess supply of output that can lead to a fall in price.

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