Question 1

Half of the vehicles sold in North America are assembled in North America,and most of the remainder are assembled in China and Japan.

Accepted Answer

The answer of Half of the vehicles sold in North...

Question 2

If a company has a product that is made at only one plant,and the critical location factor is minimizing the cost of distribution throughout North America,then the optimal factory location is on either the West or East coast rather than the U.S.interior.

Accepted Answer

The optimal factory location depends on the distribution network and customer locations. If customers are spread across North America, a central location might minimize distribution costs better than a coastal location.

Question 3

A labor-intensive industry is one in which wages and other compensation paid to employees constitute a very small percentage of expenses.

Accepted Answer

A labor-intensive industry is one in which wages and other compensation paid to employees constitute a significant portion of expenses. Therefore, the statement is false.

Question 4

If products are more expensive to transport than inputs,the optimal location for a factory is near the source of inputs.

Accepted Answer

The answer of If products are more expensive to transport...

Question 5

Canada's most important industrial region is northeastern Ontario.

Accepted Answer

While northeastern Ontario is an important industrial region, it is not Canada's most important. The most important industrial region is the Greater Toronto Area, which includes Toronto and surrounding municipalities. It is home to a diverse range of industries, including finance, technology, media, and manufacturing.

Question 6

For a bulk-gaining operation,such as a final vehicle assembly plant,the critical location factor is minimizing transportation to the market.

Accepted Answer

For a bulk-gaining operation, minimizing transportation to the market is crucial as it reduces the cost and time required for transportation, and also helps to maintain the quality of the final product.

Question 7

Airplanes are normally the most expensive mode of transport,so they are usually reserved for transporting expensive heavy equipment over long distances to make it cost effective.

Accepted Answer

Airplanes are typically used for transporting high-value, time-sensitive, or perishable goods rather than heavy equipment, as they are more expensive compared to other modes of transport like ships or trains.

Question 8

Containerization has facilitated transfer of packages between modes at break-of-bulk points because they may be packed onto a rail car,transferred quickly to a container ship to cross the ocean,and unloaded onto trucks or rail cars at the other end.

Accepted Answer

Containerization has made it easier to transfer packages between different modes of transportation such as rail, ship, and truck. This is because containers can be easily loaded onto a railcar, shipped on a container ship, and then unloaded onto trucks or railcars at the destination port. Therefore, the statement is true.

Question 9

Trucks are most often used for short-distance delivery because they can be loaded and unloaded quickly and cheaply.

Accepted Answer

Trucks are typically used for short-distance delivery because they can easily access urban areas and can make multiple stops efficiently. Additionally, they have lower operating costs compared to other transportation modes like airplanes or ships.

Question 10

An industry in which the inputs weigh more than the final products is a bulk-gaining industry.

Accepted Answer

An industry in which the inputs weigh more than the final products is a bulk-reducing industry, not a bulk-gaining industry.

Question 11

In the early years of the Industrial Revolution,multistory factories were constructed in the countryside because of the availability of cheap land.

Accepted Answer

The answer of In the early years of the Industrial...

Question 12

Regardless of transportation mode,cost remains the same regardless of how many times inputs or products are transferred from one mode to another.

Accepted Answer

The cost can vary depending on the number of transfers and the modes used. Each transfer between modes can incur additional fees, handling costs, and potential delays, which can impact the overall expense.

Question 13

Chrysler,Ford,and General Motors are known as the Detroit 3 because their headquarters,research facilities,and all their assembly plants are clustered in the Detroit area.

Accepted Answer

While Chrysler, Ford, and General Motors are known as the Detroit 3 due to their historical roots and headquarters in the Detroit area, not all of their assembly plants are located there. They have facilities spread across various locations in the United States and internationally.

Question 14

Industry arrived a bit later in North America than in the United Kingdom,but it grew much faster in the nineteenth century.

Accepted Answer

This statement is true. While industry developed earlier in the United Kingdom, it quickly spread to North America where it grew rapidly in the nineteenth century, fueled by factors such as a large workforce, abundant natural resources, and technological advancements.

Question 15

Just-in-time delivery means that producers have less inventory to cushion against disruptions in the arrival of needed parts.

Accepted Answer

Just-in-time delivery is a production strategy in which products are only made when needed, and inventory is kept to a minimum. This means that producers do not have a large cushion of inventory to rely on if there are disruptions in the arrival of needed parts. Therefore, the statement is true.

Question 16

Carmakers' assembly plants account for only around 30 percent of the value of the vehicles that bear their names.

Accepted Answer

Carmakers' assembly plants typically handle the final assembly of vehicles, but many components and systems are sourced from suppliers, which contribute significantly to the overall value of the vehicle.

Question 17

Within auto alley,U.S.-owned carmakers and suppliers have clustered in Michigan and nearby northern states,whereas foreign-owned carmakers and parts suppliers have clustered in the central and southern portions of auto alley.

Accepted Answer

The statement correctly mentions that U.S.-owned carmakers and suppliers have clustered in Michigan and nearby northern states, while foreign-owned carmakers and parts suppliers have clustered in the central and southern portions of auto alley.

Question 18

China's steel industry has grown in spite of a lack of access to the primary inputs of iron ore and coal.

Accepted Answer

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Question 19

The distribution of steelmaking in the United States demonstrates that when the source of inputs or the relative importance of inputs changes,the optimal location for the industry remains the same.

Accepted Answer

The statement is false. If the source of inputs or the relative importance of inputs changes, the optimal location for the industry may also change.

Question 20

Generally,the farther something is transported,the lower is the cost per kilometer (or mile).

Accepted Answer

This is because some fixed costs such as packaging, handling, and documentation are spread over a larger distance, reducing the cost per unit of distance. Additionally, transportation costs may be affected by different factors such as mode of transportation, distance, volume, and weight of the shipment.

Quiz 11: Industry