Question 1

Railroads are:
A) more energy efficient than most other modes
B) more likely to haul energy producing materials than other modes
C) not as energy efficient as most other modes
D) buying more energy efficient locomotives

Accepted Answer

Railroads are generally more energy efficient than other modes of transportation, such as trucks, due to their ability to move large volumes of goods over long distances with relatively low fuel consumption.

Question 2

The railroads dominate the market for:
A) hauling 30,000 pounds or more over 300 miles.
B) hauling 60,000 pounds or less than 100 miles.
C) oversize and over-dimension shipments.
D) coal and chemicals.

Accepted Answer

The railroads dominate the market for hauling 30,000 pounds or more over 300 miles because they are the most efficient and cost-effective way to transport large quantities of goods over long distances.

Question 3

The basic unit of measurement for railroad freight handling is known as the:
A) unit load.
B) Carload
C) freight load.
D) capacity load.

Accepted Answer

The basic unit of measurement for railroad freight handling is known as the carload, which refers to the amount of goods that can be transported in a single railroad car.

Question 4

What is the major cost element of the railroad?
A) operation and maintenance of locomotives
B) operation and maintenance of rights
C) operation and maintenance of railcars
D) operation and maintenance of yards and terminals

Accepted Answer

The major cost element of the railroad is the operation and maintenance of rights, which includes the cost of maintaining the tracks, bridges, and other infrastructure that the railroad uses to operate its trains.

Question 5

Intermodal traffic expanded by _____ from 1980 to 2012.
A) 100 percent
B) 365 percent
C) 319 percent
D) 300 percent

Accepted Answer

Intermodal traffic expanded by 319 percent from 1980 to 2012, reflecting significant growth in the transportation of goods using multiple modes of transportation.

Question 6

What do the majority of rail movements involve?
A) manufactured goods
B) bulk liquids and coal
C) low value, heavy commodities
D) consumer goods

Accepted Answer

Rail movements primarily involve low value, heavy commodities such as coal, iron ore, and grain.

Question 7

Railroad carloadings have declined since 1900. What is the primary reason for the decline?
A) competition by foreign transportation
B) fuel efficient smaller cars
C) reduction in line trackage
D) larger cars and increasing car productivity

Accepted Answer

The primary reason for the decline in railroad carloadings since 1900 is the use of larger cars and increasing car productivity, which allows for more goods to be transported in fewer cars, thus reducing the total number of carloadings needed.

Question 8

Which best characterizes the short-run cost structure of the railroads?
A) low variable costs, high direct separable costs
B) low fixed costs, low variable costs
C) low joint costs, high separable costs
D) large proportion of indirect fixed costs

Accepted Answer

Railroads have a large proportion of indirect fixed costs, such as infrastructure maintenance and administrative expenses, which do not vary significantly with the amount of goods transported or the distance over which they are transported.

Question 9

What was the purpose of the legislation which created Amtrak?
A) It relieved railroads from the responsibility of providing passenger service
B) It allowed the government to provide service without concern for profit
C) It allowed the states to take over commuter service
D) It allowed the railroads to get rid of track that was only used by passenger trains

Accepted Answer

The legislation that created Amtrak, the Rail Passenger Service Act of 1970, was primarily intended to relieve private railroads from the financial burden of providing passenger service, which had become unprofitable.

Question 10

Which is a major reason for the decline in the number of rail companies?
A) mergers and unification occurring in the railroad industry
B) government restrictions on rail ownership
C) loss of business to other modes
D) desire of management to invest in other areas of business

Accepted Answer

Mergers and unification in the railroad industry have led to a decline in the number of rail companies as smaller companies are absorbed into larger ones, reducing the total number of independent rail operators.

Question 11

Who are the owners the greatest percentage of rolling stock in use?
A) class I railroads
B) federal government for military moves
C) private car leasing firms and shippers
D) investment and financial firms

Accepted Answer

The answer of Who are the owners the greatest percentage...

Question 12

Intramodel competition is:
A) the joint use of trucks and railroads to serve common customers
B) trucking companies underbidding other modes to secure business
C) various modes seeking to gain market share from other modes
D) a government sponsored activity

Accepted Answer

Intramodel competition refers to competition within the same mode of transportation, where various companies or entities using the same mode (e.g., trucking, rail, etc.) compete against each other to gain market share.

Question 13

What is the difference between TOFC and COFC service?
A) TOFC is slower and cheaper
B) not all railroads can handle COFC
C) that COFC is more costly
D) one method moves the trailer on its wheels and the other moves only the "box" or the container.

Accepted Answer

TOFC (Trailer on Flat Car) involves moving the entire trailer, including its wheels, on a flatcar, while COFC (Container on Flat Car) involves moving only the container or "box" without the trailer's wheels.

Question 14

Which type of railroad car has the greatest numbers in service?
A) tank car
B) covered hopper
C) flat car
D) Gondola

Accepted Answer

Covered hopper cars are the most numerous type of railroad cars in service. They are versatile and used for transporting bulk commodities that need protection from the weather, such as grain, sugar, and fertilizer. This versatility and the broad range of commodities they can carry make them a common sight on the rails, leading to their high numbers in service.

Question 15

When did scheduled common carrier freight and passenger service begin in the U.S.?
A) 1918
B) 1868
C) 1789
D) 1830

Accepted Answer

Scheduled common carrier freight and passenger service in the U.S. began in 1830 with the Baltimore and Ohio Railroad.

Question 16

In 2013, railroads transported what percentage of all intercity ton miles moved by all modes?
A) 17.1 percent
B) 3.0 percent
C) 9.4 percent
D) 5.2 percent

Accepted Answer

The answer of In 2013, railroads transported what percentage of...

Question 17

Railroad per unit costs decline as traffic increases. What is the reason for this cost behavior?
A) A high proportion of variable costs in the cost structure
B) A low proportion of fixed costs in the cost structure
C) A large proportion of fixed costs in the cost structure
D) Limited capital investment by the railroads

Accepted Answer

Railroad operations have a large proportion of fixed costs, such as infrastructure and equipment, that do not vary significantly with the amount of traffic. As traffic increases, these fixed costs are spread over more units of traffic, leading to lower per unit costs.

Question 18

What is one of the strengths of the railroad industry?
A) that it is not as affected by the weather as are other modes
B) that the railroads have large carrying capacity
C) that it can move products in both directions
D) that geographical barriers are not as formidable as they are for other modes

Accepted Answer

Railroads have a large carrying capacity, allowing them to transport large volumes of goods efficiently over long distances. This is a key strength of the railroad industry, making it a preferred mode of transportation for bulk commodities.

Question 19

The demand for freight:
A) originates when the carrier asks for the business
B) starts when the shipper calls the railroad to provide equipment to move a shipment
C) is a derived demand based on the demand for products
D) is based upon government quotas

Accepted Answer

The demand for freight is a derived demand, meaning it originates from the demand for products that need to be transported, rather than from the transportation service itself.

Question 20

One of the benefits of a railroad merger is:
A) there are fewer grade crossings
B) less frequent interchanges between companies means faster service
C) cities and towns get back land once used for railroads
D) The STB does not have as many companies to regulate.

Accepted Answer

Less frequent interchanges between companies can streamline operations and reduce delays, leading to faster service. This is because a merged railroad system can operate more directly, with fewer stops to transfer cargo between different companies' trains.

Quiz 6: Railroads

Railroads are:

The railroads dominate the market for:

The basic unit of measurement for railroad freight handling is known as the:

What is the major cost element of the railroad?

Intermodal traffic expanded by _____ from 1980 to 2012.

What do the majority of rail movements involve?

Railroad carloadings have declined since 1900. What is the primary reason for the decline?

Which best characterizes the short-run cost structure of the railroads?

What was the purpose of the legislation which created Amtrak?

Which is a major reason for the decline in the number of rail companies?

Who are the owners the greatest percentage of rolling stock in use?

Intramodel competition is:

What is the difference between TOFC and COFC service?

Which type of railroad car has the greatest numbers in service?

When did scheduled common carrier freight and passenger service begin in the U.S.?

In 2013, railroads transported what percentage of all intercity ton miles moved by all modes?

Railroad per unit costs decline as traffic increases. What is the reason for this cost behavior?

What is one of the strengths of the railroad industry?

The demand for freight:

One of the benefits of a railroad merger is: