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What did the Airline Deregulation Act allow air carriers to do?

  1. To serve only international routes.

  2. To merge with each other without restrictions.

  3. To buy new aircrafts without government approval.

  4. To permit the air carriers to set individual routes; To permit the air carriers to set exclusive fares; To encourage the air transportation system.

The correct answer is: To permit the air carriers to set individual routes; To permit the air carriers to set exclusive fares; To encourage the air transportation system.

The Airline Deregulation Act allowed air carriers to set individual routes, offer exclusive fares, and encouraged the air transportation system. The three incorrect options do not fully encompass the scope of the Act. Option A is incorrect, as the Act did not solely allow for international routes, but also domestic routes. Option B is incorrect, as mergers between air carriers were still regulated under the Act. Option C is incorrect, as government approval was still necessary for the purchase of new aircrafts.