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21 Aug 2010, 02:46
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D
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
55%
(hard)
Question Stats:
67% (02:14) correct
33%
(02:36)
wrong
based on 908
sessions
History
Date
Time
Result
Not Attempted Yet
Consumer activist: By allowing major airlines to abandon, as they promptly did, all but their most profitable routes, the government’s decision to cease regulation of the airline industry has worked to the disadvantage of everyone who lacks access to large metropolitan airport.
Industry representative: On the contrary, where major airlines moved out, regional airlines have moved in and, as a consequence, there are more flights into and out of most small airports now than before the change in regulatory policy.
Which one of the following is assumption on which the consumer activist’s argument depends?
(A) Before the recent change in regulatory policy, there was no advantage in having easy access to large metropolitan airport.
(B) When any sizable group of consumers is seriously disadvantaged by a change in government policy, that change should be reversed.
(C) Government regulation of industry almost always works to the advantage of consumers.
(D) At the time of the regulatory change, the major airlines were maintaining their less profitable routes at least in part because of government requirements.
(E) Regional airlines lack the resources to provide consumers with service of the same quality as that provided by the major airlines.
Industry representative: On the contrary, where major airlines moved out, regional airlines have moved in and, as a consequence, there are more flights into and out of most small airports now than before the change in regulatory policy.
Which one of the following is assumption on which the consumer activist’s argument depends?
(A) Before the recent change in regulatory policy, there was no advantage in having easy access to large metropolitan airport.
(B) When any sizable group of consumers is seriously disadvantaged by a change in government policy, that change should be reversed.
(C) Government regulation of industry almost always works to the advantage of consumers.
(D) At the time of the regulatory change, the major airlines were maintaining their less profitable routes at least in part because of government requirements.
(E) Regional airlines lack the resources to provide consumers with service of the same quality as that provided by the major airlines.
21 Aug 2010, 03:29
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D it is..took me 3 mins though
Major airlines abandoned their less profitable routes after government's decision to cease regulation -> activists assumes that only this regulation forced airline industry to hold their less profitable routes.
Major airlines abandoned their less profitable routes after government's decision to cease regulation -> activists assumes that only this regulation forced airline industry to hold their less profitable routes.
nusmavrik
Joined: 26 Nov 2009
Last visit: 03 Apr 2022
Posts: 467
Given Kudos: 36
Status:Impossible is not a fact. It's an opinion. It's a dare. Impossible is nothing.
Affiliations: University of Chicago Booth School of Business
Location: Singapore
Concentration: General Management, Finance
Schools: Chicago Booth - Class of 2015
21 Aug 2010, 09:47
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P1 : the government’s decision to cease regulation of the airline industry has worked to the disadvantage of everyone
The keyword here is the "Govt" decision.
D allows the consumer activist to state P1 more affirmatively. Because the airlines was in losses "partly" due to Govt's fault, it is the govt which is responsible for the losses before the regulation. D reiterates who is at fault.
(A) Before the recent change in regulatory policy, there was no advantage in having easy access to large metropolitan airport. ----> This is 180 degree wrong choice.
(B) When any sizable group of consumers is seriously disadvantaged by a change in government policy, that change should be reversed. ----> Out of scope
(C) Government regulation of industry almost always works to the advantage of consumers. ----> Out of scope
(E) Regional airlines lack the resources to provide consumers with service of the same quality as that provided by the major airlines. ----> Out of scope
The keyword here is the "Govt" decision.
D allows the consumer activist to state P1 more affirmatively. Because the airlines was in losses "partly" due to Govt's fault, it is the govt which is responsible for the losses before the regulation. D reiterates who is at fault.
(A) Before the recent change in regulatory policy, there was no advantage in having easy access to large metropolitan airport. ----> This is 180 degree wrong choice.
(B) When any sizable group of consumers is seriously disadvantaged by a change in government policy, that change should be reversed. ----> Out of scope
(C) Government regulation of industry almost always works to the advantage of consumers. ----> Out of scope
(E) Regional airlines lack the resources to provide consumers with service of the same quality as that provided by the major airlines. ----> Out of scope
