Which of the Following Statements Is Correct Regarding the Restrictions

question 33

Multiple Choice

Which of the following statements is correct regarding the restrictions on entry into the airline industry?

• A) Resources were equally allocated because new airlines were kept out of the industry.
• B) Resources were misallocated because low-cost airlines were kept out of the industry.
• C) Resources were efficiently allocated because high-cost airlines were kept out of the industry.
• D) Resources were reallocated because only low-cost airlines were allowed to enter the industry.

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Definitions:

Quantity Demanded

The aggregate quantity of a product or service that buyers are ready and capable of buying at a particular price point.

Surplus

An excess of what is needed or used, typically referring to goods, services, or resources exceeding what is required.

OPEC

The Organization of the Petroleum Exporting Countries, a group of oil-producing nations that coordinate petroleum policies and prices globally.

Price Ceiling

A government-imposed maximum price that can be charged for a good or service, intended to protect consumers.