What description best captures OPEC's evolution in the 1980s according to the material?

What description best captures OPEC's evolution in the 1980s according to the material?

• A. Transform into a formal cartel to enforce quotas
• B. Abandon quotas and let free market determine production
• C. Merge with non-OPEC producers to form a global cartel
• D. Stop production entirely

Answer: (A)

In the 1980s, OPEC moved toward a formal quota system to control production and stabilize prices, instead of relying on loose cooperation or free-market forces. This shift reflected a push to enforce and monitor defined output ceilings among member countries, turning OPEC into a more structured cartel-like arrangement. The goal was to manage supply more predictably in response to price volatility and internal cheating, making quotas the central tool for coordination. Abandoning quotas to let the market set production didn't happen, and there was no merging with non-OPEC producers to form a global cartel, nor any move to halt production entirely.

In the 1980s, OPEC moved toward a formal quota system to control production and stabilize prices, instead of relying on loose cooperation or free-market forces. This shift reflected a push to enforce and monitor defined output ceilings among member countries, turning OPEC into a more structured cartel-like arrangement. The goal was to manage supply more predictably in response to price volatility and internal cheating, making quotas the central tool for coordination.

Abandoning quotas to let the market set production didn't happen, and there was no merging with non-OPEC producers to form a global cartel, nor any move to halt production entirely.