1. If a demand shock causes an economy to operate at a point above potential GDP, then

Select one:

a. the aggregate supply curve will shift to return the economy to the original point of equilibrium

b. the economy will correct itself through rising wages and prices

c. this short-run equilibrium point will become the new long-run equilibrium GDP

d. the economy will correct itself through falling wage rates and prices

e. the shock is said to be a negative demand shock

2. One reason why economists often appear to disagree when asked about the impact of some macroeconomic policies is that

Select one:

a. they do not understand the economy very well

b. economics is a very difficult science, and so there are many incorrect economic projections being made

c. economists rarely disagree; people just think they are disagreeing because they do not understand the language of economics

d. economists often appear to be disagreeing when one is talking about long-run impact while the other is referring to short-run impacts

e. economists are by nature competitive individuals and they often disagree

3. An increase in government spending leads to a(n)

Select one:

a. downward shift of the aggregate expenditure line and a leftward shift of the money demand curve

b. upward shift of the aggregate expenditure line and a rightward shift of the money demand curve

c. downward shift of the aggregate expenditure line and a rightward shift of the money demand curve

d. upward shift of the aggregate expenditure line and a leftward shift of the money demand curve

e. upward shift of the aggregate expenditure line but no shift of the money demand curve

4. Which of the following would increase labor productivity?

Select one:

a. an increase in the physical capital stock per worker

b. an increase in human capital per worker

c. an increase in natural resources per worker

d. a technological improvement

e. All of the above are correct

5. If a firm bakes cookies and sells them for $900 while spending $150 on sugar, $250 on chocolate, $100 on other supplies, $100 on wages and $200 on rent, what is its value added?

Select one:

a. $100

b. $200

c. $300

d. $400

e. $500

6.The official measure of unemployment may underestimate actual unemployment because

Select one:

a. people may lie when reporting they are looking for jobs

b. the treatment of involuntary part-time workers and discouraged workers is misleading

c. the population sample employed by the Labor Department is too small to be representative

d.

e.

7. If domestic households purchased an imported car at $200,000, which of the following could have occurred, all else being the same?

Select one:

a. GDP decreases by $200,000, with a decrease of $200,000 in net exports

b. GDP increases by $200,000, with an increase of $200,000 in net exports

c. GDP remains unchanged

d. The consumption component of GDP increases by $200,000

e. Both c and d

8. Suppose the Federal Reserve wants to decrease the money supply by $100,000. If the required reserve ratio is 0.1, which of the following actions will achieve the Fed’s goal?

Select one:

a. The Fed must purchase $100,000 in bonds

b. The Fed must sell $100,000 in bonds

c. The Fed must purchase $10,000 in bonds

d. The Fed must sell $10,000 in bonds

e. The Fed must sell $90,000 in bonds

Read the case study and answer the questions

When many people think of a traditional, established company, they think of IBM. IBM has been famous for its written and unwritten rules—such as its no-layoff policy, its focus on individual promotions and achievement, the expectation of lifetime service at the company, and its requirement of suits and white shirts at work. The firm was one of the mainstays of the “man in a gray flannel suit” corporate culture in the United States. Times have certainly changed. IBM has clients in 170 countries and now does two-thirds of its business outside the United States. As a result, it has overturned virtually all aspects of its old culture. One relatively new focus is on teamwork. While IBM uses work teams extensively, like almost all large organizations, the way it does so is unique. To foster appreciation of a variety of cultures and open up emerging markets, IBM sends hundreds of its employees to month-long volunteer project teams in regions of the world where most big companies don’t do business. Al Chakra, a software development manager located in Raleigh, North Carolina, was sent to join GreenForest, a furniture manufacturing team in Timisoara, Romania. With Chakra were IBM employees from five other countries. Together, the team helped GreenForest become more computer-savvy to increase its business. In return for the IBM team’s assistance, GreenForest was charged nothing. This is hardly altruism at work. IBM firmly believes these multicultural, multinational teams are good investments. First, they help lay the groundwork for uncovering business in emerging economies, many of which might be expected to enjoy greater future growth than mature markets. Stanley Litow, the IBM VP who oversees the program, also thinks it helps IBMers develop multicultural team skills and an appreciation of local markets. He notes, “We want to build a leadership cadre that learns about these places and also learns to exchange their diverse backgrounds and skills.” Among the countries where IBM has sent its multicultural teams are Turkey, Tanzania, Vietnam, Ghana, and the Philippines. As for Chakra, he was thrilled to be selected for the team. “I felt like I won the lottery,” he said. He advised GreenForest on how to become a paperless company in 3 years and recommended computer systems to boost productivity and increase exports to western Europe. Another team member, Bronwyn Grantham, an Australian who works at IBM in London, advised GreenForest about sales strategies. Describing her team experience, Grantham said, “I’ve never worked so closely with a team of IBMers from such a wide range of competencies.”

Required Questions:

Question 01: If you calculate the person-hours devoted to IBM’s team projects, they amount to more than 180,000 hours of management time each year. Do you think this is a wise investment of IBM’s human resources? Why or why not?

Question 02: Why do you think IBM’s culture changed from formal, stable, and individualistic to informal, impermanent, and team-oriented?

Question 03: Would you like to work on one of IBM’s multicultural, multinational project teams? Why or why not?

Question 04: Multicultural project teams often face problems with communication, expectations, and values. How do you think some of these challenges can be overcome?

Is this a good answer? Would you add anything to this answer? Thank you.

5) Gamma-delta T cells are Weird. (Yes, that capitalization is intentional.) Although they undergo V(D)J recombination to produce their γδ chains, they have a limited repertoire of gene segments to use, and apparently only certain combinations are stable (for example Vγ9/Vδ2), further limiting what antigens they can see. Additionally, they do not require seeing MHC molecules with peptides to function, suggesting they do not always see protein-based antigens. Weirder yet, some γδ T cell subsets have the ability to phagocytose antigen and themselves function as antigen-presenting cells. Some scientists argue that these features suggest that γδ T cells are an evolutionary ‘left-over’, a bridging cell type between ancient innate immune cell types and the more recently developed adaptive cell types.  

Identify two other pieces of evidence from the text or literature and explain why they do or don’t support the idea that γδ T cells are “missing links” of the immune system.

(8 points, 4 per explanation)

Answer:

Gamma delta T cells (γδ T cells) are T cells with a specialized T-cell receptor (TCR) on their outer covering or surface. Comparisons between the δ and γ V, D and J gene portions within the primate species have shown a fascinating order of how these loci have evolved (Holtmeier & Kabelitz, 2005). The gene segments of the δ locus have not changed considerably in the primate ancestry from humans to marmosets; the gene directive, overall, is well-looked-after and most of the genes remain purposeful with few duplications or deletions.

Evolutionary perspectives of the Gamma delta T cells:

Gamma delta T cells are an enigma of the immune system. Their triggers are not really understood. An attempt to explain their role as the cells that bridge the gap between innate and adaptive immunity doesn’t really justify their niche in the immune system, rather it focuses on their complex behavior. Therefore, hypotheses can be derived from the inferences that are made as a bid to explain their fundamental behaviors, as follows:

First Hypothesis:

The gamma delta T cells are placed at the borderline between the innate immune response that is quick in its action against any agents whether it be pathogens or micro-organisms, coming from outside, and the adaptive immune response which is extremely specific in its action and uses the B and T cells to tailor an immune response for the body, against the incoming foreign agents. This is basically because of the uniqueness of the gamma delta t cells which bear TCRs, that are mostly invariant in nature. A good example in this regard would be the Natural Killer T cells that bear the CD1d-restricted sites (Holtmeier and Kabelitz, 2005). This hypothesis says that gamma delta t cells are indeed, the missing links between the two evolutionary types of immunity.

Second Hypothesis

The second hypothesis is a reinforcement of the fact that gamma delta T cells really are the missing links between the evolutionary steps of immunity. Some evidence has surfaced in the recent findings that confirm recent work has shown that Vγ9/Vδ2 T cells in human are also proficient enough to carry out complex processes such as the phagocytosis, a function previously found to occur only in innate myeloid lineage cells such as neutrophils, monocytes and dendritic cells (Holtmeier and Kabelitz, 2005). This makes the fact very credible that these cells are actually the link between the two types after all.

Case Study 2: Employee Selection at Deloitte Australia

Deloitte is the brand name used for Deloitte Touche Tohmatsu Limited, a UK private company with more than 263,900 professionals worldwide in the service areas of audit, tax, consulting, financial advisory, risk management, and related services. The firm operates in more than 150 countries and had revenues in fiscal year 2018 of $43.2 billion. Deloitte is one of the “Big Four” accounting firms and the largest professional services firm in the world.

Deloitte Australia is recognized as the number one employer-of-choice for graduates by Gradconnection. Workplace Gender Equality Agency has recognized the firm as am employer-of-choice for women. Deloitte Australia is the only professional services firm on the Australia Center for Corporate Social Responsibility’s Top Ten list. Further, the firm has invested more than $20 million in their communities through pro bono work and donations, as well as through volunteer work.

Deloitte Australia, like the rest of Deloitte, is a highly progressive company that is often on the leading edge of human resource practices. The firm provides information on the company website that can serve as a guide for prospective employees. The website includes information about the company’s recruitment and selection processes for both new college graduates and experienced hires.

The application process for college students starts with completing an online application process. Applicants can also read information about Deloitte and about the members of the recruitment team on the website. Recruitment team members review applications, make an assessment of fit with skills, and determine if there is a match to key selection criteria. The company tries to contact applicants in seven days with a decision about continuation in the selection process.

The selection process includes multiple steps. The process starts with a first interview, usually by phone with a member of the recruitment team. The process continues with interviews with members of the relevant service team. The number of these interviews varies across service areas. The process ends with an in-depth interview addressing technical and motivational fit with the role, team and company. A Deloitte partner from the service line participates in the final interview.

The selection process for some roles may also include psychometric or skills-based tests. Other roles require an assessment in the form of a case study. These assessments take place either online or face-to-face, and within two weeks of the rest of the interviews.

Finally, if the firm is interested in making an offer, they will conduct a pre-employment check of references and work rights with the Australian Government Department of Immigration and Border Protection (DIBP).

Questions

1. Discuss the pros and cons of providing so much information about the selection process on the company website. Would this amount of information make you more or less likely to apply for a job with Deloitte Australia, or any other company for that matter that provided this much information? Discuss your response.
2. What concerns would you have about the process if you were an applicant?
3. Describe the selection process in terms of which parts are initial screening and which are final screening. Is Deloitte Australia using a compensatory, multiple hurdle, or multiple-cutoff approach to selection? Why do you think they have chosen this particular approach? Do you think it is logical given the nature of the firm?
4. Research Australian hiring guidelines and discuss how they differ from U.S. guidelines and how they are similar.

Managing Employee Benefits: A New Retirement Plan at Grinders Manufacturing Grinders Manufacturing faces some tough questions as the organization moves to expand operations. The 75-year old company, with more than 400 employees, produces machine parts, and a new market opportunity will allow the company to expand operations and build a new facility. While Grinders is a business that has endured the test of time, the company has faced many challenges over the past several decades. At one point in the mid 1960s, the company had more than 800 employees. A strong employee union at that time established competitive market pay rates and a generous benefits package that included a traditional defined benefit retirement plan. However, through the 1980s and 1990s, Grinders faced declining sales along with increasing expenses. The company laid off nearly half of its workforce, and while it maintained operations, the company continued to struggle. A frustrated workforce eventually voted to decertify the union, and the plant now remains union-free. However, things seem to be turning around as the new market opportunity for Grinders holds the promise to build back itsworkforce. As the company moves forward with its growth plans, Shane Meadow, Director of Human Resources, is examining all of the company’s HR management policies and practices to ensure that the company is prepared to meet the future challenges. Employee benefits are also under review, with the retirement plan under particular scrutiny as it is one of the most significant expenses for the company. Shane decides to begin his review by examining the company’s retirement plan to determine if the current plan is the most financially responsible plan for the company. The defined benefit retirement plan set in place through union negotiations years ago is available for all full-time employees. However, the company’s declining sales and unstable financial situation have made maintaining the plan challenging. The current plan uses a unit benefit formula that calculates each employee’s retirement benefit based on years of service and pay. With many long-term employees, the company makes significant contributions to the plan each year to ensure that the promised benefits will be available. In addition to the financial impact of the plan, Shane has noted that as he hires new staff, they find the plan complex to understand. Shane is considering transitioning to a defined contribution retirement plan, such as a Section 401(k) plan. His initial thoughts on this change are that the company would be better able to manage the plan financially, as the company contribution to the plan could be a profitsharing plan that would base the company’s contribution to the plan on company profits. He feels this would lower the company’s financial risk in supporting the retirement benefit. If it provided a profit-sharing plan as part of a Section 401(k) plan, it would ask employees to contribute to the plan as well. Shane believes that asking employees to invest in their own retirement will help employees understand the value of their retirement benefits. While the transition process of terminating the defined benefit plan and establishing a defined contribution plan would be complex, Shane believes at this point that it may be a good decision for the company in the long run. Further, the upcoming expansion plans provide a good opportunity to make such a change.

1. Based on the circumstances that Grinders Manufacturing is facing, do you think that Shane’s intention to move to a defined contribution plan is a good idea?

2. Who will the change benefit more, the company or the employees?

Develop a program Grades.java that collects the user's (students) name, course name, and the score for three quizzes. You are supposed to read this data from the keyboard using the Scanner class. Calculate the total score and the average score.

Further, using the grading scale below, based on the average score computed above, your program should calculate and output a letter grade. and the range boundaries should be configured properly (i.e.: exactly 90 and above is an A, and anything less than 90 to exactly 80 is a B). The grading scale to use is as follows:

Note: The E Category is not a typo.

Declare the variables in the order studName, courseName, scoreQuiz_1, scoreQuiz_2, and scoreQuiz_3, totalScore, averageScore, and letterCategory. Make sure you declare the variables studName, courseName, and letterEvaluation as String class variables. Select proper data type for the variables totalScore and averageScore. The data type should support decimals. Use a constant variable NUM_OF_Quizzes to compute the average score.

Things to watch for: As you are determining your logic for your if statements in this project, consider that a percentage of 90.0 results in an A, 89.8 results in a B category, 79.12 results in a C category, and 69.994949 results in a D category. That last example is a bit extreme, but the idea is to not try to predict how many 9s after the decimal you need to account for. Just think of where the last boundary ends and where the next one begins, and how you might use your mathematical operators to account for that (is it less-than-or-equal-to, or just less than?).

Formatting: Import the package DecimalFormat to format the average score data. You do this by typing: import java.text.DecimalFormat; either below or above the line: import java.util.Scanner;

Then create a DecimalFormat object by typing: DecimalFormat df = new DecimalFormat("##.00"); either above or below the line Scanner scnr = new Scanner(System.in);

A format with 2 digits would be displayed by using the df as follows:

System.out.println("The average score is: "+df.format(averageScore));

Pseudocode: Prior to writing the Java code for the project, develop a document in pseudocode that outlines how the program will flow. Remember that there are no specific rules regarding pseudocode, but rather you should write pseudocode in a way that is human-readable and understandable (English for this assignment).

The following example is what your program might look like:

____________________________________________________________________________________

Your Score Card for Three Quizzes

Please enter your name : Julie Kimbal

Please enter your course you are taking : CS1400 Fundamentals of Programming

Please enter the score for quiz 1 : 77

Please enter the score for quiz 2 : 85

Please enter the score for quiz 3 : 79

The total score is 241.0

The average score is : 80.33

Thanks Julie Kimbal. Your grade for the 3 quizzes in CS1400 Fundamentals of Programming is a (n) B.

________________________________________________________________________________________________________________________

Experiment cases: Make sure that your program computes correct average scores for the following experiment cases:

You need to upload three files:

1. attach a screenshot of one output
2. pseudocode document
3. java file (not the class file) Grades.java

Part 2: T-tests and Correlation

For each question, conduct the appropriate statistical analysis. If some sort of t-test is appropriate for the question, determine which type of t-test is appropriate. If you are going to conduct an independent samples t-test, determine whether you need to do the version of the test for equal variances or the version for unequal variances. For each test, state the null hypothesis, state the alternative hypothesis, state the type of test that you conducted, and report and interpret the results. If ANOVA is the appropriate analysis, follow-up with the appropriate post-hoc tests if you reject the null hypothesis for your ANOVA. The data for each question can be found in the Excel file entitled “Data for Project 3.” Show your work in your spreadsheet just as you did for the practice exercise. Each question is worth 7 points.

A group of 12 welfare recipients participated in a job training program. Before- and after-abilities were measured through a standardized test. The data can be found in the sheet entitled “Part 2 Question 1.” Is there evidence of improvement?

An important function of a firm’s human resources manager is to track worker turnover. As a general rule, companies prefer to retain workers. New workers frequently need to be trained and it often takes time for new workers to learn how to perform their jobs. To investigate nationwide results, a human resources manager organized a survey wherein a random sample of men and women was asked how many years they had worked for their current employers. The data can be found in the sheet entitled “Part 2 Question 2”. Can we infer that men and women have different job tenures?

This question is based on the article, "The German economy: Clouds ahead", published by The Economist on June 7, 2014 (located at the end of the question)

(a) According to the article, German labor market has done well since the second half of 2000s. What are the two main reasons given by the article for this outcome? Please support your conclusions with appropriate quotations from the article.

(b) The article points out that Germany has been under-investing between the early 2000s and early 2010s. What evidence does the article present for Germany's under-investment in that period? [5] According to the article, what are the likely consequences of low investment for productivity growth in the German economy?

(c) According to the article, what role has the government played in Germany's under-investment? What is the likely impact to this aspect of government policy on Germany's long-run real exchange rate, based on the model(s) of exchange rate determination?

(d) The article claims that Germany's services sector requires an array of reforms. If the proposed reforms are implemented and those reforms end up raising the productivity of Germany's service sector, what would be the impact on Germany's competitiveness vis-à-vis its trading partners? Please make sure to explain the mechanism that supports the answer you provided.

Article starts here: Clouds ahead

AFTER months of procrastination, the European Central Bank acted on several fronts on June 5th to counter low inflation, currently just 0.5% in the euro zone. The ECB lowered its main lending rate from an already low 0.25% to 0.15%. More important, it became the first big central bank to resort to negative interest rates by lowering its deposit rate, paid to banks parking funds with it, from zero to minus 0.1%—in effect charging them. Moreover, it announced new measures to help credit-starved businesses in the periphery of the euro zone by providing cheap long-term funding to banks supporting such firms through their lending. Such stimulus had become essential to promote a broader recovery that relies less on Germany.

Buoyant German growth of 0.8% (or 3.3% at an annualised rate), reflected in Berlin by cranes on the skyline and roadworks at street level, was all that kept the economy of the euro area from contracting in the first quarter of 2014. Though that pace is likely to slow, Germany's economy is expected to expand by around 2% a year in both 2014 and 2015, easily outstripping the rest of the single-currency club, as it has done since the euro crisis started in 2010.

Germany's current-account surplus has averaged nearly 7% of GDP since 2006 and reached a new peak of 7.5% in 2013. Sustaining so big a surplus is all the more remarkable since Germany's main export market, the rest of the euro zone, has been so sickly; the surplus with other euro members has fallen from 4.5% of GDP in 2007 to 2.1% in 2013. But exporters have been adaptable, taking advantage of the hunger in high-investing emerging markets for the machinery and transport goods that German firms excel at producing.

A humming labour market, helped by past far-reaching reforms, is another indication that things are going well. Employment last year reached nearly 42m, a rise of 3m in the past decade and the highest since unification in 1990. Unemployment has fallen from 11.4% of the labour force nine years ago to 5.2% now, a post-unification low and the second-lowest level in the 28-country EU.

The surge in jobs has contributed to healthy tax revenues. A long period of ultra-low long-term interest rates, in part due to Germany's status as a haven during the euro crisis, has also lowered borrowing costs on government debt. These favourable conditions, along with fiscal restraint, mean that German public finances have been blooming, too. In 2012 the overall budget balance edged into surplus and last year government debt fell below 80% of GDP for the first time since 2009.

These economic and fiscal successes continue to make Germany a bastion of strength in the fragile euro zone. But the long-term outlook is worryingly weak. Although western Germany had a baby boom from the mid-1950s until the mid-1960s, its birth rate has been below the replacement rate (of around 2.1) since the start of the 1970s. Net migration, though currently high at around 400,000 people a year, will not be enough to counter this demographic drag, which is reducing the potential for growth by crimping the labour supply. That makes higher productivity growth vital. Yet even if productivity improves substantially, the demographic pressure is such that potential economic growth will fall below 1% within a decade, according to the OECD (see chart).

Raising productivity growth requires higher investment in both physical and human capital. Despite Germans' pride in their imposing current-account surplus, it can be interpreted as a sign of weakness, since it represents a shortfall of domestic investment in relation to national saving. Total investment has fallen from 21.5% of GDP in 2000 to 17.2% in 2013. The government is not only investing too little in new infrastructure but also spending too little on maintenance.

The biggest decline in investment, however, has been from business. According to the DIW, an economic think-tank in Berlin, investment needs to be raised by around 3% of GDP permanently. Markus Kerber of the Federation of German Industry is especially worried about infrastructure, ranging from power grids to broadband.

The shortfall in capital is human as well as physical. In Berlin, as elsewhere in Germany, employers report skills shortages in many industries. Spending on education is lower than it is in other rich countries, with only part of that gap warranted by the dwindling number of children. An OECD survey of working-age adults in rich countries found that Germans were a little more numerate than the average but a bit less literate—a surprisingly poor result. The share of young people getting a tertiary qualification (such as a university degree) is less than a third, below the average for advanced countries.

Higher productivity growth will require a better performance on the part of the services sector, which makes up 69% of the economy. It lacks the dynamism of Germany's manufacturers despite an encouraging surge in internet startups in Berlin. Reforms to enhance competition, especially among professional services, worth 10% of GDP, would help to gin up productivity more generally. The OECD advocates an array of reforms such as loosening the grip of notaries over commercial registration and the removal of regulated prices for the services of architects and building engineers—a restrictive arrangement unique to Germany within the EU.

But with things going so well, there is little appetite for a new wave of reforms. According to a recent poll by Eurobarometer, 84% of Germans are satisfied with the state of their economy, the highest share in the euro zone. The coalition government formed at the end of last year is too inclined to respond to the demand for payback after previous painful reforms, notes Michael Hüther, head of IW Köln, an economic think-tank. A case in point is the recent backpedalling on pension reform, which will allow some people to retire with a full pension at 63 rather than 65.

The resilience of the German economy should not be underestimated. But for the euro zone's good and its own, Germany cannot afford to become complacent.

Q1. The Cartel That Makes Sure Airplane Tickets Never Get Cheaper

SKY HIGH

It’s been a windfall year for the industry, but you won’t be getting any better accommodations or more affordable fares. What gives?

Updated Apr. 14, 2017 10:33AM ET / Published Jun. 22, 2015 5:21AM ET

Jim Young/Reuters

Screw the passengers.

That appears all too often to be the governing philosophy of the airline business.

Take the case of a United Airlines flight from Chicago to London last weekend. A technical problem forced the plane to abort its trans-Atlantic route and divert to Goose Bay in Canada. The 176 passengers were marooned there for more than 20 hours, sleeping in unheated military barracks at near-freezing temperatures.

“There was nobody from United Airlines to be seen anywhere,” one passenger told NBC News. “No United representative ever reached out to anybody, no phone calls, no human beings, no nothing. Nobody had any idea what was going on.”

It so happened that this came at the end of a week in which the world’s airline chiefs, junketing in Miami, celebrated their most lucrative year ever. They are projecting profits totaling $29.3 billion in 2015—almost double what they made in 2014.

And you must have noticed if you’re flying anywhere in the U.S. this summer that seat prices are not falling. Indeed, if the owners of those seats are suddenly feeling fat and happy, they are in no mood to pass on their swell feelings to you. It’s hard to imagine any other service industry being run like the airline business—but then there is no other business like the airline business.

So now we have a novel opportunity to see how airlines behave when, suddenly and much to their surprise, they find themselves with a business model that is working. If making a profit is a new experience for them, what effect will that have on their behavior?

First, let us consider why the numbers have been transformed.

There has been a steep change in the efficiency of jets. Beginning with the Boeing 787 Dreamliner, the combination of lighter but stronger composite materials in structures and a quantum leap in engine efficiency, using far less fuel, has slashed operating costs per airplane by as much as 30 percent.

In the last year, this windfall has been boosted by the large decline in oil prices.

However, these dual benefits are not being evenly spread either among airlines or continents. Airlines stuck with fleets of older airplanes are not getting these benefits. Fleet age has become far more decisive in deciding an airline’s profitability, particularly true in the U.S.

The three major U.S. legacy carriers—American, United, and Delta—failed to get in early to order the new generation of airplanes—the 787, the Airbus A350, revamped versions of the Boeing 777, the Airbus A320, and the Boeing 737—and allowed European, Middle Eastern, and Asian competitors to become first adopters and, thereby, reap the benefits of lower fuel costs.

The average age of the jets in the American fleet is 12.3 years; for United 13 years; and for Delta 17.2 years. It won’t be until at least 2020 that they can finally dump the oldest of their airplanes. (American has actually been delaying the delivery of some new jets that it ordered.)

Age doesn’t mean that an airplane is unsafe. Properly maintained 20-year-old jets are not in danger of falling apart. The frequency of flights determines retirement age more than years and the smaller single-aisle jets used on domestic routes age the fastest because they are making up to seven flights a day.

Age may not be dangerous but it sure registers with passengers when it contrasts with the comforts they encounter in the new generation of jets with their better cabin climate and quieter engines. So it’s not surprising that when airlines show up with all-new fleets as well as gracious cabin crews people start wondering, Why can’t it always be like this?

It’s also not surprising that the major American carriers are now trying to stop those airlines from coming to an airport near you.

When it comes to price and the domestic U.S. routes, not only are prices not coming down but there is persuasive evidence of price-fixing. The veteran investigative reporter James B. Stewart described this market as a classic oligopoly in a penetrating piece in The New York Times .

However, this is far from being a new phenomenon. These tactics began long before the final round of consolidation mergers when US Airways was swallowed by American Airlines in 2013. They have merely been continually refined to the point now when the airlines, suddenly enjoying profits, have responded not by lowering fares but by tightening control over the number of seats available and cutting back on flight frequency and destinations.

The reality is that the airlines don’t need to expose themselves to charges of collusion on fares and the operation of a hidden cartel that mutually governs capacity. That’s so 20th century.

These days their key tool is “yield management”—being able to precisely calculate how many seats should be available on any given route at any time of the day or night and adjusting the price hour-by-hour according to demand. This algorithm has become so refined and the market so controlled that each of the major airlines ends up looking at the same numbers on their computer screen. No human intervention is needed. In all but name it is a cartel—but one run entirely by unaccountable robots.

So?

We live in the world’s most vigorously capitalist marketplace. What’s wrong with airlines trying to make a decent profit, for once? And what is the point of them flying empty seats around the skies?

But I come back to my earlier point: How do these airline executives behave when, joy of joys, they find their balance sheets deeply in the black? Like a lot of other corporate minders they think a lot more about their shareholders than their customers. Short-termism rules. Wall Street responds to quarterly earnings, not patient long-term strategy.

A good example is Jet Blue. This airline was a rare example of a successful startup based on a maverick idea: super-chummy cabin staff and generously spaced seating. A new CEO (previously schooled by the stingy bean-counters at British Airways) is undermining that spirit by jamming more seats into the cabin and raising baggage charges, all at the behest of shareholders.

The problem is that the people running airlines in the U.S. have one part of their brain missing, the part that provides the service ethic. As well as fare-gouging they’re space gouging in the cabins. Even with the newest jets like the Dreamliner they are packing more seats into coach than the airplane designers (or nature) intended.

Q1. Read the above article and answer the questions that follow.

a. Why did the investigative reporter James B. Stewart describe US airlines as a classic Oligopoly?

b. What is the meaning of yield management as described in the above article?

c. Why did the writer accuse people running airlines of missing service ethics