Research by Daniel Kahneman,Jack Knetsch,and Richard Thaler Has Shown That

question 357

Multiple Choice

Research by Daniel Kahneman,Jack Knetsch,and Richard Thaler has shown that companies like airlines were explicitly able to include a fuel surcharge in their prices because

• A)consumers had no choice but to pay the price of the surcharges due to the lack of competition in the industry.
• B)a government-imposed price ceiling on airline ticket prices left the airlines not other way to cover the increase in costs.
• C)adding a separate fuel surcharge to the price of airline tickets did not actually increase the price of the tickets.
• D)consumers see it as fair for firms to raise prices after an increase in costs.

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Definitions:

Erik Olin Wright

An American sociologist known for his work on class structure, social stratification, and alternatives to capitalist economies.

Marx

Karl Marx, a 19th-century philosopher, economist, and socialist, known for his critique of capitalism and theory of historical materialism.

Class Analysis

The study of the social and economic divisions within society, particularly regarding social class and inequality.

Stratification

The arrangement or classification of society into layers or classes based on factors like wealth, occupation, or race.