CFA Practice Question

There are 539 practice questions for this study session.

CFA Practice Question

The Organization of Petroleum Exporting Countries, OPEC, attempts to set world oil prices by limiting the production of member nations. This is an example of a ______.

A. monopoly
B. duopoly
C. cartel
D. monopsony
Correct Answer: C

OPEC is the classic example of a cartel. Members attempt to coordinate their actions to act as if they were a monopoly.

User Contributed Comments 5

User Comment
StanleyMo Gosh, they r causing the oil price per barrel more than 120USD now!! pity us please.
magicchip hmmm..develop alternative energy sources and let them drink their oil.
ilgibe It wasn't Opec.
It was a demand driven increase... and the first buyer was China, at least till the beginning of Olympic games.
EMerkert Federal Reserve...also a cartel
azramirza The reading says forming cartel is illegal...But OPEC is not..so how can Federal Reserve be a cartel?
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