If the USgovernment Decided to Regulate the Prices of Airline Tickets to Tickets

question 36

Multiple Choice

If the U.S.government decided to regulate the prices of airline tickets to keep them from falling when the economy is weak,there would tend to be a ________ of airline tickets in the market and this would likely ________ the profits of U.S.airlines.

• A) shortage; increase
• B) shortage; reduce
• C) surplus; increase
• D) surplus; reduce

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Definitions:

Conceptual Framework

A structure of principles and guidelines that supports the creation of accounting standards and helps in the preparation of financial reporting.

Financial Reporting

Crafting statements that unveil a business's financial health to those managing it, its investors, and regulatory bodies.

GAAP

Generally Accepted Accounting Principles, the standard framework of guidelines for financial accounting in the United States.

Accrual Accounting

A financial recording strategy that documents earnings and outlays upon accrual, rather than basing the records on the actual cash exchange dates.