Source: https://www.youtube.com/watch?v=2RgJE8a6k6M

1/ In the beginning of the video, a trip between LA and Miami for three would cost:

$8000.

$2000.

$10,000.

$4000.

2/ The de-regulation of the airline industry is coined by the term:

creative creation.

creative destruction.

competition.

survival of the fittest.

3/ According to the Solman video, deregulation of airlines in the United States causes _________ in the price of airline travel and ___________ in the amount of travel.

a decrease, a decrease

a decease, an increase

an increase, an increase

an increase, a decrease

4/ Creative destruction means that the deregulation of airlines_____________.

created congestion at airports.

led to the failure of some airlines and the creation of others.

destroyed popular confidence in the airline industry.

reduced airline safety.

5/ The airline deregulation made some better off and others worse off. Which of the following statements is true?

Deregulation made worse off travelers who have low incomes.

Deregulation made better off travelers who like to travel in comfort.

Deregulation made safety conscious travelers worse off.

Deregulation made travelers better off by making air travel more affordable.

6/ The per-passenger-mile costs of air travel were at the levels given in the following table. Which of the following statements draws a correct inference from these cost data?

AirlineCost per Passenger Mile (in cents)

Jet Blue6

Southwest7

AirTran8

US Airways14

Airlines are profitable if their cost is less than 14 cents per passenger mile.

Of the four, U.S. Airways is the airline that is least likely to be profitable.

U. S. air is the most successful airline because it provides its customers with higher cost travel.

Of the four, Jet Blue is the airline that is most likely to suffer bankruptcy.

7/ Theairlines produced air travel at the lowest cost per passenger mile of are likely to survive and stay competitive.

True

False

8/ The regulation of the airline industry led to the surplus in the market which caused inefficiency.

True

False

9/ Economist AlfredKahn thinks the benefits of airline industry de-regulation outweigh the costs.

True

False