Which of the following has occurred as a consequence of the Airline Deregulation Act of 1978?
a. Through mergers, airlines have formed an international cartel to restrict the number of flights and thus have successfully raised airline fares above the (inflation-adjusted) levels observed prior to deregulation.
b. By 2000, airline fares were about 27 percent lower (in inflation-adjusted dollars) than before deregulation began, and there was a considerable increase in numbers of people flying.
c. Deregulation weakened the power of airlines and strengthened the power of airline labor unions. Thus the Air Line Pilot's Association union was able to negotiate higher wages and a shorter work-month.
d. Accident rates increased by 10 percent to 45 percent, depending on the specific measures used.
b
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A decrease in the nominal wage will cause the aggregate supply curve to
A. shift outward. . B. shift inward. C. become flatter D. become steeper. .
When compared with China, the growth of clothing exports originating in Bangladesh clearly illustrates the Ricardian model of comparative advantage. Discuss and explain
What will be an ideal response?
One problem with fiat money, as compared to commodity money, is that: a. more resources are used to create fiat money
b. there is frequently too little fiat money available. c. there is a greater potential for inflation with fiat money. d. fiat money must be turned in to the government to receive the commodity on which it is based. e. fiat money is less divisible than commodity money.
An individual's demand curve for a good is derived by
a. varying the income level and observing the resulting total utility derived from both goods b. varying the price of one good and observing the resulting quantities demanded of the other good c. varying the prices of both goods and observing the changes in quantities demanded of both goods d. shifting the budget line to the left and calculating the loss in total utility e. varying the price of one good and observing the resulting quantities demanded of that good