Which of the Following Is True of Deregulation and Airline

question 57

Multiple Choice

Which of the following is true of deregulation and airline safety in the U.S.?

• A)Airline safety has deteriorated since the deregulation of the airline industry because safety standards are determined by the airlines themselves.
• B)Airline safety has deteriorated since airline deregulation because increased competition does not give airlines any incentive to reduce the number of accidents.
• C)Since airline safety standards are set by a government agency,deregulation of routes and fares is not directly linked to airline safety.
• D)Airline safety has increased post-deregulation because airlines are now not required to insure their aircrafts against accidents.

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Definitions:

Machine Hours

A measure of production time, representing the hours a machine is operated in the manufacturing of a product.

Costing System

A method or procedure adopted by a business to estimate the cost of its products for inventory valuation, cost control, and decision making.

Overapplied Overhead

Occurs when the overhead allocated to products or services is more than the actual overhead costs incurred.

Profit Margin

The percentage of revenue that exceeds the cost of goods sold, indicating the profitability of a product or service.