Question

2. Problems and Applications Q2 The New York Times (Nov. 30, 1993) reported that "the inability of OPEC to agree last week to cut production has sent the oil market into turmoil . . . [leading to] the lowest price for domestic crude oil since June 1990." Statements True False The members of OPEC were trying to agree to cut production so they could raise the price. OPEC was unable to agree on cutting production because each country experiences different production costs. The newspaper also noted OPEC's view "that producing nations outside the organization, like Norway and Britain, should do their share and cut production." What does the phrase "do their share" suggest about OPEC's desired relationship with Norway and Britain? OPEC would like Norway and Britain to act competitively. OPEC would like Norway and Britain to keep their production levels high. OPEC would like Norway and Britain to join the cartel.

Answer 1

OPEC was trying to raise the price of oil by cutting production, but they couldn't agree due to different production costs. OPEC wants Norway and Britain to join the cartel and cooperate.

Step-by-step explanation:

OPEC was created in the 1960s as an economic alliance to regulate the global oil market. The members of OPEC were trying to agree to cut production so they could raise the price. However, they were unable to agree on cutting production because each country experiences different production costs. The phrase 'do their share' suggests that OPEC would like Norway and Britain to join the cartel and cooperate with OPEC's efforts to control oil production and prices.