Beginning in the late 1970s and into the 1980s, the US transportation industry was deregulated. The net result was a less competitive environment.

Question

BlackTom AI · Accepted Answer

The prompt presents a two-part statement about US transportation deregulation in the late 1970s and 1980s, and asks you to evaluate the truth of each part.
Option A: 'The first sentence is false, but the second sentence is true.' The first sentence claims deregulation occurred in the late 1970s through the 1980s; this is broadly accurate, as key sectors (airlines with the Airline Deregulation Act of 1978, trucking with the Motor Carrier Act of 1980, etc.) moved toward deregulation starting in that period. The second sentence asserts that the net result was a less competitive environment; in fact, deregulation generally increased competition by removing entry barriers, reducing price controls, and expanding routes in many segments. Therefore, the claim of a less competitive outcome is incorrect.
Option B: 'Both sentences are true.' This option would require both that deregulation began in the specified period and that the net result was less competition. As just discussed, the second part is not true because deregulation tended to enhance competition. Thus, this option is inaccurate.
Option C: 'Both sentences are false.' Since the first sentence about deregulation in that era is true, this option is false because it incorrectly labels the first claim as false despite the historical timeline.
Option D: 'The first sentence is true, but the second sentence is false.' This option captures the accurate assessment: the deregulation did begin in the late 1970s into the 1980s, and the net result was more competition rather than less. The phrasing aligns with the historical understanding that deregulation sought to foster competition by reducing regulatory constraints, though the precise market effects varied by sector and time.
In evaluating each choice, consider the cause-and-effect implied: deregulation is intended to lower barriers and increase competition; if a statement asserts reduced competition as a result, it conflicts with the typical outcome of the policy shift. That misalignment is the key flaw in the options claiming a less competitive environment. Also note that some options mirror each other or state contradictory positions; recognizing these duplications helps avoid misreading the prompt. Finally, ensure you distinguish between the accuracy of the regulatory timeline (true) and the economic consequence (typically more competition, not less), which is the crux of selecting the correct option.

Beginning in the late 1970s and into the 1980s, the US transportation industry was deregulated. The net result was a less competitive environment.

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