question
What are primary segments of commercial aviation?
answer
Regional/commuter air carriers
Large commercial air carriers
Large commercial air carriers
question
What is the principal benefit of mergers?
answer
Cost rationalization
question
Who was the biggest loser throughout the course of the economic "trough" that followed the terrorist attacks on September 11, 2001?
answer
Passengers
question
150 is 25% of what number?
answer
600
question
What term best characterizes the US airline industry?
answer
Volatile
question
One trend in the global airline industry is a thriving cargo industry due to increased globalization of the business marketplace.
answer
True
question
Which region is expected to surpass the North American market in the next 20 years in terms of absolute growth and market share?
answer
Asia-Pacific
question
In the ten years following deregulation, how many airline mergers and acquisitions took place?
answer
51
question
100 is what percent of 80?
answer
125%
question
Which category of economic impact includes off-site economic activities that are attributable to air transportation activities?
answer
Indirect impact
question
An increase in price will increase total revenue for goods with inelastic demand.
answer
True
question
What type of goods have an income elasticity greater than 1?
answer
Superior
question
What is the percentage change in the dependent variable resulting from a 1 percent change in the independent variable?
answer
Elasticity
question
Which of the following is the best proxy variable for income?
answer
Gross domestic product
question
If cross-price elasticity of demand is found to be less than zero, then the related firm's product is determined to be which of the following?
answer
Complementary
question
What measures the elasticity over a range of values?
answer
Arc elasticity
question
What is the percentage change in the quantity demanding resulting from a 1 percent change in price?
answer
Price elasticity
question
What measures the impact of a related firm's price on demand?
answer
Cross-price elasticity
question
How is elasticity of demand measured?
answer
(Change in quantity) / (Change in price)
question
If the product's income elasticity is greater than zero, then the good is categorized as which of the following?
answer
Normal
question
Which of the following are methods by which to analyze the global air transport industry?
answer
Aircraft in Service
Passenger and Cargo Traffic
Passenger and Cargo Traffic
question
What is the main factor affecting world air traffic growth?
answer
Prosperity of the region
question
Historically, mergers have been very successful in the aviation industry.
answer
False
question
Which category of economic impact includes off-site economic activities that are attributable to air transportation activities?
answer
Indirect impact
question
Which of the following are factors that have led to the general reduction in consolidation at US airports?
answer
Increased competition from LCCs
Major carriers pushing more flying to regional affiliates
Major carriers pushing more flying to regional affiliates
question
The North American airline industry has historically been the most dominant player in the global aviation industry.
answer
True
question
Which of the following are primary segments of commercial aviation?
answer
Regional/commuter air carriers
Large commercial air carriers
Large commercial air carriers
question
Which of the following is a fundamental assumption of economics?
answer
People respond predictably to a given set of choices in order to maximize their benefits and minimize their losses
question
Which of the following are true of the Law of Demand?
answer
-If we lower the price of a product, that will raise the quantity demanded for the product
-If we raise the price of a product, that will lower the quantity demanded for the product
-If we raise the price of a product, that will lower the quantity demanded for the product
question
What is the ability and willingness to buy specific quantities of a good or a service at alternative prices in a given time period under ceteris paribus conditions?
answer
Demand
question
Which of the following states that quantity demanded has a negative or inverse relationship with price?
answer
Law of demand
question
Since the FAA was formed in 1958, accident rates have dropped almost
answer
92.5 percent
question
Which determinant of demand causes a movement along the demand curve?
answer
Ticket price
question
Which type of unemployment is a function of the time it takes the labor market to match the available jobs with persons in the labor force?
answer
Frictional unemployment
question
Which of the following are factors that are held constant for the demand curve to not change?
answer
Income
Population
Preference
Price expectations
Price of related product
Population
Preference
Price expectations
Price of related product
question
Externalities and lack of competition are examples of what type of failures?
answer
Market failure
question
Which characteristic of demand for air transport refers to a long-term trend of peaks and troughs of economic activity?
answer
Cyclicality
question
What term refers to the point of intersection between the demand curve and the supply curve?
answer
Equilibrium
question
Which of the following is true as the supply curve becomes more and more inelastic, or as the slope gets higher and higher?
answer
It become increasingly difficult for the producers to shift the burden of the cost to the consumers
question
Which of the following are factors that affect the law of supply?
answer
Number of suppliers
Price of related goods
Price of inputs
Expected future price
Price of related goods
Price of inputs
Expected future price
question
What is the private, non-profit corporation that Canada moved to in 1996?
answer
NavCanada Corporation
question
According to the FAA, how many airports have more than 10,000 enplanements and are grouped as commercial service airports in the US?
answer
422
question
Which of the following are types of privatization?
answer
Traditional
Full divestiture
Long-term lease
Full divestiture
Long-term lease
question
Who took over the responsibility of civil aviation with the Civil Aeronautics Act?
answer
Civil Aeronautics Authority
question
As delay factors increase in magnitude, they increase the quantity of air traffic demanded.
answer
False
question
As of 2007, how many countries have implemented commercialization reforms of their ATC operations?
answer
40
question
Most opposition to ATC commercialization centers on which of the following?
answer
User fees
question
Which of the following is the best proxy variable for income?
answer
Gross domestic product
question
If the product's income elasticity is greater than zero, then the good is categorized as which of the following?
answer
Normal
question
If the demand curve for a product is almost horizontal, the product is what?
answer
Perfectly elastic
question
How is elasticity of demand measured?
answer
(Change in quantity) / (Change in price)
question
Which of the following are categories of price elasticity?
answer
Inelastic
Unitary Elastic
Elastic
Unitary Elastic
Elastic
question
which of the following is true if any change in price, within reason, won't change the demand?
answer
It is perfectly inelastic
question
Which of the following measures the elasticity of the function at a specific value?
answer
Point elasticity
question
Which of the following are major elasticities?
answer
Price elasticity
Cross-price elasticity
Income elasticity
Cross-price elasticity
Income elasticity
question
If cross-price elasticity of demand is found to be less than zero, then the related firm's product is determined to be which of the following?
answer
Complementary
question
Which of the following determines the sensitivity that changes in the annual income of consumers have on the quantity demanded for a product?
answer
Income elasticity
question
A perfectly upward sloping supply curve represents which of the following?
answer
Perfect inelasticity
question
What term looks at how a price change in one good would influence the quantity demanded in another good?
answer
Cross elasticity of demand
question
If elasticity of demand is less than 1,a 1% drop in price would result in which of the following?
answer
A less than 1% increase in quantity
question
If you multiply 0.99 times 1.01, you will get 1.
answer
False
question
If there is a very large change in quantity supplied as a result of a very small change in price, which of the following is true?
answer
The supply is approaching perfect elasticity
question
If you sold nine burgers at $5.50 each, what would be your total revenue?
answer
$49.50
question
At the inelastic points on the demand curve, how is total revenue influenced by a decrease in price?
answer
Total revenue will decrease
question
When calculating the cross elasticity of substitute products, what will the result be?
answer
A positive number
question
At the unit elasticity point on the demand curve, how is total revenue influenced by a decrease in price?
answer
Total revenue will decrease
question
How is cross elasticity of demand calculated?
answer
Percent change in quantity/Percent change in price
question
What is the largest of the ever-present threats to profitability?
answer
fuel costs
question
The ultimate question of profitability depends to a large extent on what?
answer
Elasticity of demand
Cost containment ability
Cost containment ability
question
Which of the following is a measure of how consolidated the domestic US market is?
answer
Herfindahl-Hirschman index
question
Which of the following innovations have allowed airlines to reduce costs?
answer
-E-ticketing
-Frequent Flyer programs
-Simpler cockpit and better engine design
-Frequent Flyer programs
-Simpler cockpit and better engine design
question
Which of the following terms best characterizes the US airline industry?
answer
Volatility
question
Which of the following is a focus of macroeconomics?
answer
economy
question
Which of the following are stages of a business cycle?
answer
Expansion or recovery
Peak
Contraction or recession
Trough
Peak
Contraction or recession
Trough
question
Which of the following are determinants of demand?
answer
Frequency of service
State of economy
Prices of ticket
Costs of substitutes
State of economy
Prices of ticket
Costs of substitutes
question
Which of the following is true of the law of supply?
answer
All else equal, if the price goes down, the quantity supplied goes down
All else equal, if the price goes up, the quantity supplied goes up
All else equal, if the price goes up, the quantity supplied goes up
question
The FAA expects flight operations to increase by what amount over the next decade?
answer
Over 35%
question
Which of the following are studies that have concluded that US ATC management is flawed?
answer
-Aviation Safety Commission in 1988
-National Performance Review in 1993
-Secretary of Transportation's Executive Oversight Group in 1994
-National Performance Review in 1993
-Secretary of Transportation's Executive Oversight Group in 1994
question
How is demand impacted by delay?
answer
Demand decreases immediately, multiplying over time
question
Which of the following measures the impact of a related firm's price on demand?
answer
Cross-price elasticity
question
How is elasticity of supply calculated?
answer
(Percent change in quantity supplied)/(Percent change in price)
question
When calculating the cross elasticity of complement products, what will the result be?
answer
A negative number
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