Scenario 2.1 Use the Following to Answer the Questions

question 71

Multiple Choice

Scenario 2.1
Use the following to answer the questions.
Southwest Airlines has a history of being able to retain its employees due to the atmosphere and culture of the company. Employees have been known to dress up in costume on an airplane, engage in "games" with the passengers, and generally provide a fun atmosphere for traveling. While other airlines have low rates of customer satisfaction, Southwest tends to maintain a high rating with its customers. Recent gas price hikes have caused most airlines to charge for checked luggage and to fill every flight to its maximum, adding to the negative experience of airline travel. Southwest keeps its costs low through several methods, one being that they do not serve meals on flights, or provide pre-boarding passes. The typical flight is two hours or less and occurs between several selected cities rather than flying to practically anywhere in the country. Southwest is known for its low fares, its dependability, and its on-time flights.
-Refer to Scenario 2.1. In Southwest Airlines' SWOT analysis, the rising gas prices are a(n) .

• A) hindrance
• B) strength
• C) threat
• D) weakness
• E) opportunity

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Definitions:

Outward Shift

An increase in the production capacity of an economy, often represented as an outward movement on a graph.

Production Possibilities Curve

A graph that depicts the maximum output of two goods that can be produced with available resources and technology, assuming all resources are fully utilized.

Tax Policy

The government's approach to taxation, which includes the determination of tax rates and the identification of what economic activities or transactions will be taxed.

Production Possibilities Curve

A graphical representation showing the maximum combination of goods and services that can be produced using all available resources efficiently.