1. Describe the challenges Lucky Air faced when collecting fares directly from customers.

2. How did Lucky Air usually sell tickets?

3. Identify the four functions of money.

4. Which of the four functions of money in China's financial system was not efficient?

5. Suppose China started to have a high inflation rate because VAT was increased. What would you recommend to Lucky Air about selling tickets several months in advance?

6. In your opinion, should China's central bank improve the efficiency of the financial system, or is that better left to the free market? Why?

Read the paper below:

http://web.archive.org/web/20200715073533/https://mitsloan.mit.edu/LearningEdge/CaseDocs/08-076%20Ecommerce%20at%20Yunnan%20Lucky%20Air%20-%20Lehrich.pdf