Deck 2: Transportation: The Critical Link in the Economy

Question 1

In terms of average house hold expenses,transportation is:

A) First
B) Second
C) Third
D) Last

Answer 1

B

Question 2

Which of the following is considered a transportation service characteristic?

A) Capability
B) Transit time
C) Reliability
D) All of the above are service characteristics

Answer 2

D

Question 3

The transit time would impact which of the following cost?

A) Inventory cost
B) Marketing cost
C) Production cost
D) Insurance cost

Answer 3

A

Question 4

What key element is critical to the ability to sell products made in large scale production facilities?

A) efficient transportation
B) highly technical production
C) just in time sourcing
D) high quality design

Question 5

In the 21st Century,the U.S.Transportation System will face serious challenges from:

A) Inadequate infrastructure
B) Sustainability issues
C) Energy costs
D) All of the above

Question 6

What percentage of ton mile traffic in the U.S.is carried by air?

A) 4%
B) 10%
C) 15%
D) None of the above

Question 7

Transportation systems are critical to industrialized societies because?

A) They allow employees to work longer hours
B) They allow producers to expand their market areas
C) They provide access to recreation areas
D) None of the above

Question 8

If a product costs $100 to produce,the firm expects 15% margin on the cost to produce and transportation per unit costs $5,what is the least price the firm is likely to accept for the product?

A) 115
B) 120
C) 105
D) 100

Question 9

A transportation shipment of 75 tons for 125 miles would be:

A) 200 ton-miles
B) 3125 ton-miles
C) 9375 ton-miles
D) 6250 ton-miles

Question 10

The demand for transportation is considered a:

A) Derived demand
B) Independent demand
C) Primary demand
D) Substitute demand

Question 11

Which mode of transportation is most important in terms of passenger-miles?

A) Air Carriers
B) Rail Carriers
C) Motor Carriers
D) Pipelines

Question 12

Aggregate transportation expenditures are about what percentage of GDP in the U.S.?

A) 1%
B) 10%
C) 15%
D) 20%

Question 13

Which of the following is considered a non-economic transportation regulation area?

A) Safety
B) Security
C) Environment
D) All of the above

Question 14

Which mode of transportation is most important in terms of freight ton-miles?

A) Air Carriers
B) Rail Carriers
C) Motor Carriers
D) Pipelines

Question 15

Ozone reduction is a concern due to what compound used in refrigeration?

A) carbon dioxide
B) chloroform
C) chlorofluorocarbons
D) chlorophyll

Question 16

What was the primary reason for the creation of the U.S.interstate roadway system?

A) commerce
B) defense
C) create depression era jobs
D) promote manufacturing

Question 17

Demand for transportation at the macro is _______,while demand for transportation at the micro level is _______?

A) elastic, elastic
B) elastic, inelastic
C) inelastic, inelastic
D) inelastic, elastic

Question 18

Based upon Lardner's Law,if transportation costs decreased by 2500,how much does the relevant market area increase?

A) 200%
B) 50%
C) 400%
D) 600%

Question 19

What is a major reason for lower freight transportation cost?

A) more efficient use of equipment
B) lower demand
C) higher fuel prices
D) driver shortage

Question 20

What does the right of eminent domain mean?

A) You can use force to protect your house
B) The government can seize your property for public use
C) If you are born in the U.S. you are a citizen automatically
D) Rail companies can seize your land

Question 21

Explain place utility.

Question 22

In addition to its economic role,what other roles are associated with transportation:

Question 23

What is transportation's impact on the environment?

Question 24

Explain the relationship between the political process and transportation.

Question 25

The investment by government in transportation infrastructure is frequently referred for as:

Question 26

What was the purpose of the Kelly Act?

Question 27

Explain the roles and importance of geographic specialization.Is this role more important in a global economy?

Question 28

Explain time utility and its importance in the global markets.

Question 29

Why is transportation considered a cost center in the firm?

Question 30

Explain how transportation can contribute to the economic value of a product.

Question 31

Explain the economic importance of transportation in a global economy.

Question 32

Explain the role and importance of the Mississippi River System.

Question 33

Explain modalsplit and its importance.

Question 34

Why was the construction of the Erie Canal so important in 1825?

Question 35

Transportation provides what critical link in the global economy?