JAMB 2020 Economics · Question 14
The most important goal of OPEC is to?
Options
- A.present a united front for the purpose of raise prices of crude oil
- B.bring unity among the petroleum exporting countries
- C.ensure political stability among member states
- D.ensure that rules on quota production are strictly followed
Answer: A. present a united front for the purpose of raise prices of crude oil
Explanation written with AI and checked against the answer key
Analyze the question: It asks for the most important goal of OPEC (Organization of the Petroleum Exporting Countries).
Explain the concept: OPEC was founded in 1960 (Baghdad) by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. Nigeria joined in 1971. Its official objectives are to:
- Coordinate and unify the petroleum policies of member countries
- Ensure stable and fair oil prices for producers
- Secure an efficient, regular supply of oil to consumers
- Give producers a fair return on investment
In practice, the core purpose is to act collectively (through production quotas and coordinated policy) so that members can influence and protect the price of crude oil, rather than being undercut by the big oil companies or by each other.
Solution, option by option:
- A. Present a united front to raise (protect) crude oil prices: This matches OPEC's central economic purpose, which is collective bargaining power over price and output.
- B. Bring unity among petroleum exporting countries: Unity is a means, not the end goal. It is also a vague statement.
- C. Ensure political stability among member states: OPEC is an economic body, not a political one, so this is wrong.
- D. Ensure quota rules are strictly followed: Quotas are a tool OPEC uses, and enforcement is a mechanism, not the main goal.
The wording "raise prices" is a bit loose (OPEC officially speaks of "stable and fair" prices), but A is still the closest to the main purpose.
Exam tip: Remember OPEC as a cartel for oil prices. When you see "most important goal," look for the option about price and collective policy, and treat quotas as the tool and unity as the means.
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