When Airlines Were Deregulated, Airfares Declined by 30 Percent

question 66

Multiple Choice

When airlines were deregulated, airfares declined by 30 percent. Deregulation is an example of political forces:

• A) letting the market move toward equilibrium, reducing excess supply.
• B) letting the market move toward equilibrium, reducing excess demand.
• C) making the market move away from equilibrium, creating excess supply.
• D) making the market move away from equilibrium, creating excess demand.

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Definitions:

Job-Order Costing System

A method of assigning costs to specific production batches or jobs, often used in manufacturing where the products are distinctly different.

Direct Labor Cost

The total cost of wages paid to employees who are directly involved in the production of a product or service.

Job-Order Costing System

A costing method used to collect and assign manufacturing costs to individual units or specific jobs.

Manufacturing Overhead

All indirect costs associated with the production process, excluding direct materials and direct labor expenses.