Darla is surprised to find that the quality of in-flight service remains much the same despite a steep hike in air-fares recently. What could be wrong in her assumption that a higher price naturally translates into better quality?
The fact that two variables might be related does not necessarily mean that one causes the other to occur. Darla could be ignoring other variables involved in this scenario. Increase in fares might have been necessitated by factors such as increase in aviation fuel prices, margin pressures etc.
You might also like to view...
Assuming no change in the nominal exchange rate, how will a higher rate of inflation in the United States relative to France affect the real exchange rate between the two countries? (Assume the United States is the "domestic" country.)
A) The real exchange rate will rise. B) The real exchange rate will be unaffected. C) The real exchange rate will fall. D) The impact on the real exchange rate cannot be predicted.
The difference between a firms' profit-maximizing quantity and the quantity that minimizes average cost is called excess capacity
Indicate whether the statement is true or false
In the classical model,
A. full employment will never be reached. B. wages will go up but never go down. C. unemployment will never exist because employers will be willing to pay the wage rate demanded by the workers. D. unemployment will never exist since workers will be willing to accept lower wages and will then be able to find work.
When Snap sells newly issued shares of stock this is an example of
A) direct finance in a primary market. B) direct finance in a secondary market. C) indirect finance in a primary market. D) indirect finance in a secondary market.