Airline regulation by the CAB kept prices the same on any route and also set prices high. This led airlines to offer high quality service, which raised costs to the level of prices
Indicate whether the statement is true or false
T Airline regulation by the CAB was misguided and resulted in a nonoptimal system of air travel.
Economics
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Consider a two-good production economy in which both goods are produced with fixed proportions production functions. Then, some efficient allocations will exhibit unemployment of some factor providing
a. the firms use the inputs in different proportions. b. the firms exhibit diminishing returns to scale. c. the firms exhibit increasing returns to scale. d. production can never be efficient if there are unemployed inputs.
Economics
Which of the following is a component of aggregate demand?
A. Net exports B. Taxes C. Government revenues D. Income
Economics