Question 1

Explain modalsplit and its importance.

Accepted Answer

Modalsplit is an analytical tool used to study and analyze the total transportation market for passenger and freight transport according to volume and mode.For passenger transportation more than 77 percent of the passenger mile traffic is private highway traffic.Since 1970 air travel has decreased in relative cost,as such air traffic passenger miles has increased,but it is still relatively small.Looking at freight,intercity modal split is dominated by trucks.Since 1990,rail share has increased in ton-miles due to the rising cost of fuel,but the lower cost recently has aided motor carriers.

Question 2

Explain the relationship between the political process and transportation.

Accepted Answer

The initial construction of nearly all transportation infrastructure and their maintenance is supported by the government (with the exception of freight rail service which is largely privately funded).Transportation is key to economic growth and prosperity and impacts all elements of business.Additionally,transportation infrastructure is beyond the ability of anyone industry to fund and maintain.In order to keep industry from acting opportunistically,and avoid market failures the government is also involved in establishing policy and regulation with respect to transportation safety and organization.
The government involvement in transportation may lead to certain drawbacks for some parts of the public.For instance,through right of the eminent domain,if government makes a determination that a certain route is important to societal transportation good,the government can seize personal property.
The transportation network is also important for national defense.The system of national highways mean that the government can quickly mobilize armies from one side of the country to another during a time of conflict.
The maintenance of the existing transportation infrastructure has become a major issue in the 21?? century because of competing demands for public funds such as medical care and national defense.The current situation is a major challenge for future economic expansion.In addition,there is a need for additions or improvements to the infrastructure.

Question 3

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?

Accepted Answer

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

Question 4

Explain place utility.

Accepted Answer

The answer of Explain place utility....

Question 5

What is a major reason for lower freight transportation cost?

Accepted Answer

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

Question 6

What does the right of eminent domain mean?

Accepted Answer

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 7

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

Accepted Answer

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Question 8

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

Accepted Answer

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

Question 9

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

Accepted Answer

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Question 10

Transportation provides what critical link in the global economy?

Accepted Answer

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Question 11

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

Accepted Answer

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

Question 12

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

Accepted Answer

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

Question 13

Explain the role and importance of the Mississippi River System.

Accepted Answer

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Question 14

What is transportation's impact on the environment?

Accepted Answer

The answer of What is transportation's impact on the environment?...

Question 15

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

Accepted Answer

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

Question 16

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

Accepted Answer

The answer of The investment by government in transportation infrastructure...

Question 17

The demand for transportation is considered a:

Accepted Answer

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

Question 18

In terms of average house hold expenses,transportation is:

Accepted Answer

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

Question 19

What was the purpose of the Kelly Act?

Accepted Answer

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Question 20

Transportation systems are critical to industrialized societies because?

Accepted Answer

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

Exam 2: Transportation: The Critical Link in the Economy