Why Are Alliances in the Airline Industry Unstable

question 114

Multiple Choice

Why are alliances in the airline industry unstable?

• A) Unstable industries make for unstable alliances.
• B) The potential for firms to take opportunistic actions is too widespread.
• C) The industry is declining and profits are not sufficient to divide among alliance partners.
• D) The alliances require cooperation among firms that must also compete with one another.

Understand the relationship between automatic stabilizers and budget outcomes.

Recognize the historical context and scale of U.S. budget deficits relative to GDP.

Comprehend the concept of a cyclically balanced budget in different economic conditions.

Know the implications of following a functional finance approach to federal budgeting.

---

Definitions:

Material

Any substance or matter from which something can be made or constructed.

Density

The mass per unit volume of a substance, often measured in grams per cubic centimeter (g/cm^3) or kilograms per cubic meter (kg/m^3).

Volume

The amount of three-dimensional space occupied by an object or enclosed within a container, usually measured in cubic units.

Material

A substance or mixture of substances that constitutes an object, used in the production and manufacturing of goods or constructions.