Deck 2: Transportation and the Economy

Question 1

The transit time would impact which of the following cost?

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

Answer 1

Inventory cost

Question 2

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

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

Answer 2

Air Carriers

Question 3

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

Answer 3

The government can seize your property for public use

Question 4

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

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

Question 5

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

A) Inadequate infrastructure
B) Sustainability issues
C) Energy costs
D) All of these are correct

Question 6

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 7

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

A) Safety
B) Security
C) Environment
D) All of these are correct

Question 8

In terms of average house hold expenses, transportation is:

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

Question 9

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 10

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 11

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

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

Question 12

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

A) 4%
B) 10%
C) 15%
D) None of these are correct

Question 13

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 these are correct

Question 14

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 15

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 16

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 17

Which of the following is considered a transportation service characteristic?

A) Capability
B) Transit time
C) Reliability
D) All of these are correct are service characteristics

Question 18

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 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

The demand for transportation is considered a:

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

Question 21

What was the purpose of the Kelly Act?

Question 22

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

Question 23

Explain the economic importance of transportation in a global economy.

Question 24

What is transportation's impact on the environment?

Question 25

Transportation provides what critical link in the global economy?

Question 26

A useful analytical tool for the study of transportation is:

A) Passenger-miles
B) Deregulation
C) Cass Freight index
D) Modal split

Question 27

The sensitivity of customers to changes in price is called:

A) Demand elasticity
B) Inelasticity
C) Fully landed cost
D) Marginal cost

Question 28

What is the usual demand metric for freight?

A) Passenger distance
B) Ton-mile
C) Freight to weight ratio
D) Containers per mile

Question 29

Value of service considers the _____________.

A) role intramodal transport has on road networks
B) freight to weight ratio for rail shipping
C) impact of transportation costs and services on the demand for the product
D) None of these is correct.

Question 30

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

Question 31

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

Question 32

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

Question 33

Explain the relationship between the political process and transportation.

Question 34

Explain time utility and its importance in the global markets.

Question 35

Explain modal split and its importance.

Question 36

Explain place utility.

Question 37

Why is transportation considered a cost center in the firm?

Question 38

Explain the role and importance of the Mississippi River System.

Question 39

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

Question 40

The Mississippi River is regarded as an important avenue for commerce in the U.S. because:

A) It is a major transportation artery
B) Its color is muddy
C) The river is small
D) The river floods often