Which of the following would be most likely to give the American public more air travel at a lower cost?
A. Reregulate the airline market by reestablishing the CAB.
B. Subsidize research and development and purchases of new airplanes for the major existing airlines.
C. Allow foreign airlines to enter the U.S. market.
D. Limit entry of new firms to allow the current firms to gain greater financial strength.
Answer: C
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Life expectancy at birth in the United States has more than doubled since 1850
Indicate whether the statement is true or false
Given the information in the table shown, what is the market price?
This table shows price and quantity produced for a single firm in a perfectly competitive market.
A. $20
B. $10
C. $2
D. $260
How are government revenues changed by the introduction of tariffs on imported shoes as shown in Exhibit 1?
a. loss of areas c, d, e, and f
b. loss of areas d and e
c. gain of area c
d. gain of area e
All else equal, the price elasticity of demand for small-budget items such as soap tends to be ________ than the price elasticity of demand for big-ticket items such as flat-screen TVs.
A. lower B. higher C. very high D. the same