Multiple choice

Directions: For this question, select the best of the answer choices given.

Abolition of government regulation of airfares has increased competition among airlines and thus will eventually lead to compromises in airline safety. Anxious to reduce fares in what has, as a result of deregulation, become a highly competitive market, airlines will be tempted to reduce costs by decreasing safety inspections and routine maintenance of aircraft. Which of the following, if true, would cast the most serious doubt on the prediction that deregulation of airfares will ultimately compromise airline safety?

  1. Consumers select an airline as much on the basis of its safety record as on the basis of its fares.

  2. There are a number of mechanical problems that cannot be detected in the routine inspection of aircraft.

  3. The amount of commercial air traffic has increased significantly since the regulation of airfares was abolished.

  4. The number of airline bankruptcies has increased since the regulation of airfares was abolished.

  5. When airfares were regulated, airlines were more inclined to invest in the development of new aircraft.

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The argument claims that deregulation will lead to compromised safety. Option A weakens this by showing that if consumers value safety as much as price, airlines would have strong incentive to maintain safety standards even when cutting costs to lower fares. This directly attacks the assumption that airlines will necessarily compromise on safety to compete on price.

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