Chapter 5:

True/False Questions:

1. The motor carrier industry plays a minor role in the movement of high-value, time-
sensitive goods.
Answer: False
2. Private trucking companies typically transport freight for their own business needs, rather
than for other companies.
Answer: True

Multiple Choice Questions:

3. Which of the following are advantages of motor carriers over other transportation modes?
a) Speed
b) Accessibility
c) Reliability
d) All of the above
Answer: d) All of the above
4. What is the main operational difference between Truckload (TL) and Less-than-
Truckload (LTL) motor carriers?
a) TL carriers transport full truckloads, while LTL carriers transport smaller shipments
from multiple customers.
b) TL carriers only operate in rural areas.
c) LTL carriers transport only perishable goods.
d) TL carriers have lower fuel costs than LTL carriers.
Answer: a) TL carriers transport full truckloads, while LTL carriers transport smaller
shipments from multiple customers.
5. Which of the following factors contribute to the cost structure of motor carriers?
a) Fuel costs
b) Driver wages
c) Maintenance costs
d) All of the above
Answer: d) All of the above
6. What is a significant challenge faced by the motor carrier industry today?
a) Driver shortage
b) High fuel costs
c) Environmental sustainability
d) All of the above
Answer: d) All of the above
7. Which of the following is a characteristic of private motor carriers?
a) They operate exclusively for the public.
b) They provide services for hire.
c) They transport goods for their own company.
 d) They are regulated by the government.
Answer: c) They transport goods for their own company.
8. Which of the following technologies have been implemented to improve motor carrier
efficiency?
a) Electronic Logging Devices (ELDs)
b) GPS Tracking Systems
c) Autonomous Trucks
d) All of the above
Answer: d) All of the above
9. How does the motor carrier industry compare to other modes of transportation in terms of
service characteristics?
a) Motor carriers are slower than rail transport.
b) Motor carriers have limited accessibility.
c) Motor carriers are more flexible than other modes of transport.
d) Motor carriers are primarily used for bulk goods.
Answer: c) Motor carriers are more flexible than other modes of transport.
10. What are some current trends in the motor carrier industry?
a) Adoption of green technologies
b) Increased use of data analytics for route optimization
c) Rising demand for last-mile delivery services
d) All of the above
Answer: d) All of the above

1. True or False: The motor carrier industry mainly serves the transportation of manufactured,
high-value products and food items.

 A. True
 B. False
 Correct Answer: A. True

2. Which of the following factors make motor carriers advantageous over other transport
modes?

 A. Speed
 B. Accessibility
 C. Lower loss and damage rates
 D. All of the above
 Correct Answer: D. All of the above

3. What is the main advantage of the "hub-and-spoke" system used by LTL carriers?

 A. Minimizing transportation costs

 B. Consolidating and redistributing shipments efficiently
 C. Faster shipment over long distances
 D. Reducing the need for large trailers
 Correct Answer: B. Consolidating and redistributing shipments efficiently
4. In the context of market structure, what best describes the motor carrier industry for TL
(Truckload) carriers?

 A. Monopoly
 B. Oligopoly
 C. Perfect competition
 D. Monopolistic competition
 Correct Answer: D. Monopolistic competition

5. What is the main constraint faced by the LTL (Less-than-Truckload) segment in

comparison to the TL segment?

 A. Limited access to public highways

 B. Higher capital requirements for investment in terminals
 C. Stricter government regulations
 D. Lower demand for goods
 Correct Answer: B. Higher capital requirements for investment in terminals

6. Which of the following types of equipment are used by specialized motor carriers?

 A. Refrigerated trailers
 B. Livestock carriers
 C. Tankers for liquid gas
 D. All of the above
 Correct Answer: D. All of the above

7. Which of the following is NOT a major competitive factor for motor carriers?

 A. Fuel efficiency
 B. Service reliability
 C. Warehouse storage capacity
 D. Pricing
 Correct Answer: C. Warehouse storage capacity

8. What is one of the most prominent characteristics of the U.S. motor carrier industry?

 A. The majority of carriers are large national companies

 B. Carriers mostly specialize in long-distance shipments
 C. Most carriers are small for-hire businesses
 D. Most carriers transport agricultural products exclusively
 Correct Answer: C. Most carriers are small for-hire businesses

9. How do motor carriers compare to other transportation modes when considering

flexibility?

 A. They are less flexible than rail and water transportation

  B. They have the highest degree of flexibility due to highway networks
 C. Their flexibility depends entirely on road conditions
 D. They are equally flexible as air transport
 Correct Answer: B. They have the highest degree of flexibility due to highway
networks

10. What contributed most to the growth of small truckload carriers in the 1980s?

 A. Lower fuel costs

 B. Advances in truck technology
 C. Deregulation and low start-up costs
 D. Increased demand for international shipping
 Correct Answer: C. Deregulation and low start-up costs

Chapter 1:
1. True/False Questions :

1. Question: Transportation is considered a secondary factor in connecting global supply

chains.
a) True
b) False
Answer: b) False
2. Question: Transportation has become less important in the context of globalization and
international competition.
a) True
b) False
Answer: b) False
3. Question: The development of transportation infrastructure does not significantly affect
the economic growth of regions.
a) True
b) False
Answer: b) False

2. Multiple Choice Questions :

4. Question: What is one of the benefits of efficient transportation in the global supply
chain?
a) Reducing product costs
b) Increasing the speed of goods movement
c) Ensuring delivery reliability
d) All of the above
Answer: d) All of the above
5. Question: What is the main factor influencing global trade flows?
a) Population growth
 b) Technological advancements
c) Population size and distribution
d) All of the above
Answer: d) All of the above
6. Question: What factor is considered crucial in the development of global supply chains?
a) Urbanization
b) Economic growth
c) Technology and information
d) All of the above
Answer: d) All of the above
7. Question: How can transportation help mitigate the impact of natural disasters?
a) Distribute products from alternative sources
b) Limit product supply
c) Increase product prices during disasters
d) Reduce production output
Answer: a) Distribute products from alternative sources
8. Question: What does the concept of "comparative advantage" relate to?
a) A country can produce a good at a lower opportunity cost
b) A country does not need to produce everything but should focus on goods with
advantages
c) Both a and b are correct
d) Both a and b are incorrect
Answer: c) Both a and b are correct
9. Question: What is the most important factor in helping companies compete in the global
market?
a) Efficient transportation management
b) Marketing strategy
c) Low labor costs
d) Low import taxes
Answer: a) Efficient transportation management
10. Question: Why is a large and well-distributed population important for global trade
flows?
a) Creates large consumption demand
b) Provides abundant labor force
c) Expands the market for products and services
d) All of the above
Answer: d) All of the above
11. Question: How does transportation impact the cost of products in the supply chain?
a) Reduces operating costs
b) Increases production speed
c) Lowers product costs through efficient transportation
d) Increases transportation costs
Answer: c) Lowers product costs through efficient transportation
12. Question: What is one contribution of transportation to the global supply chain?
a) Timely delivery of products
b) Providing unreliable products
 c) Increasing product costs
d) Reducing product quality
Answer: a) Timely delivery of products
13. Question: What is the primary driver of changes in supply chains in the early 21st
century?
a) Globalization and technology
b) War
c) Inflation
d) Population growth
Answer: a) Globalization and technology.
14. Question: Why can high transportation costs reduce a country's competitiveness?
a) Lowers product costs
b) Increases overall production costs
c) Reduces supply chain efficiency
d) Both b and c are correct
Answer: d) Both b and c are correct
15. Question: What role does transportation play in the supply chain for products?
a) It is an unimportant factor
b) It is only supportive
c) Plays a crucial role in delivering goods on time and at low cost
d) Reduces supply chain reliability
Answer: c) Plays a crucial role in delivering goods on time and at low cost

Chapter 2:
1. True/False Questions

1. Question: Transportation is considered the most important economic factor for a

country’s development.
a) True
b) False
Answer: a) True
2. Question: Improved transportation systems generally have no impact on land values.
a) True
b) False
Answer: b) False
3. Question: Passenger transportation has shown growth relative to GDP primarily due to
the increased use of private automobiles.
a) True
b) False
Answer: a) True
2. Multiple Choice Questions

4. Question: What is a primary reason why transportation is considered critical for

economic growth?
a) It increases the cost of products.
b) It allows goods to be produced far from where they are consumed.
c) It leads to reduced employment opportunities.
d) It limits the availability of goods.
Answer: b) It allows goods to be produced far from where they are consumed
5. Question: How does transportation affect land values in suburban areas?
a) Increases land values due to improved accessibility
b) Decreases land values due to pollution
c) Has no effect on land values
d) Decreases demand for land
Answer: a) Increases land values due to improved accessibility
6. Question: What is the estimated percentage of the U.S. GDP attributed to transportation-
related expenditures?
a) 5%
b) 9%
c) 12%
d) 19%
Answer: b) 9%
7. Question: Which of the following is a key social benefit of transportation?
a) Reduces urban population growth
b) Increases isolation of rural areas
c) Promotes mobility and accessibility
d) Causes social stratification
Answer: c) Promotes mobility and accessibility
8. Question: Why is transportation considered a facilitator of globalization?
a) It limits trade between regions.
b) It reduces the ability to export goods.
c) It enhances the flow of goods between distant regions.
d) It is irrelevant to international trade.
Answer: c) It enhances the flow of goods between distant region
9. Question: What is the impact of improved transportation on the environment?
a) It eliminates air pollution
b) It contributes to environmental challenges like pollution
c) It has no significant impact
d) It decreases the need for natural resources
Answer: b) It contributes to environmental challenges like pollution
10. Question: How does transportation benefit mass production?
a) It restricts goods to local markets
b) It allows goods to be transported efficiently to wider markets
c) It makes goods more expensive to produce
d) It reduces the scale of production
Answer: b) It allows goods to be transported efficiently to wider markets
 11. Question: What percentage of household expenditures in the U.S. is typically allocated to
transportation?
a) 5%
b) 33%
c) 17%
d) 25%
Answer: c) 17%
12. Question: Transportation's role in global supply chains includes:
a) Increasing transportation time
b) Restricting international commerce
c) Ensuring rapid and efficient movement of goods
d) Limiting access to international markets
Answer: c) Ensuring rapid and efficient movement of goods
13. Question: Which of the following is not a challenge for transportation systems in the
21st century?
a) Global competition
b) Government budget constraints
c) Increase in manual labor
d) Infrastructure challenges
Answer: c) Increase in manual labor
14. Question: Why is transportation important for the economic interdependence of
countries?
a) It allows countries to specialize in the production of specific goods
b) It decreases the need for raw materials from other countries
c) It prevents international trade
d) It reduces the need for energy production
Answer: a) It allows countries to specialize in the production of specific goods
15. Question: Which of the following statements about transportation and globalization is
correct?
a) Transportation makes global trade slower.
b) Efficient transportation systems can mitigate the impact of natural disasters on supply
chains.
c) Global transportation systems are not affected by infrastructure changes.
d) The role of transportation in globalization is declining.
Answer: b) Efficient transportation systems can mitigate the impact of natural disasters
on supply chains.

Chương 3:
1. True/False Questions

1. Question: Autonomous transportation technology has already eliminated the need for
human intervention in all aspects of commercial transportation.
a) True
b) False
Answer: b) False
 2. Question: Blockchain technology is expected to significantly reduce errors and fraud in
the global supply chain by increasing transparency.
a) True
b) False
Answer: a) True
3. Question: The majority of current transportation management systems (TMS) can fully
automate decision-making without human oversight.
a) True
b) False
Answer: b) False

2. Multiple Choice Questions

4. Question: What is one major reason for the growing interest in autonomous
transportation technologies?
a) To eliminate high fuel costs
b) To reduce operator fatigue and accidents
c) To increase labor demand
d) To lower the cost of manual maintenance
Answer: b) To reduce operator fatigue and accidents
5. Question: What role does blockchain play in the modern transportation system?
a) Increases paperwork for freight documentation
b) Enhances transparency and data sharing
c) Reduces transportation speed
d) Increases error rates in shipment tracking
Answer: b) Enhances transparency and data sharing
6. Question: What is a key benefit of the Transportation Management System (TMS) in
supply chain operations?
a) It eliminates the need for manual labor in shipping
b) It supports decision-making with real-time data analysis
c) It fully replaces human operators in all modes of transportation
d) It reduces visibility into the shipping process
Answer: b) It supports decision-making with real-time data analysis
7. Question: Which of the following is a disruptive technology in transportation discussed
in Chapter 3?
a) Rail infrastructure development
b) Autonomous vehicles
c) Basic GPS tracking
d) Containerized shipping
Answer: b) Autonomous vehicles
8. Question: Why are safety innovations critical in modern transportation technology?
a) To reduce product quality issues during transit
b) To comply with outdated governmental regulations
c) To minimize accidents and enhance security
d) To increase transportation costs
Answer: c) To minimize accidents and enhance security.
9. Question: In the context of emerging technologies, what does IoT (Internet of Things)
primarily offer to the transportation industry?
a) Reduction in communication between partners
b) Real-time tracking and monitoring of assets
c) Higher labor costs for technology experts
d) Slower delivery times
Answer: b) Real-time tracking and monitoring of assets
10. Question: What is the key challenge when selecting transportation software in the global
supply chain?
a) Over-reliance on manual data entry
b) Lack of compatibility between different systems
c) Redundant data flows between organizations
d) Inflexibility in adapting to market changes
Answer: b) Lack of compatibility between different systems
11. Question: What feature of a Transportation Management System (TMS) can most
significantly contribute to cost reduction in transportation?
a) Automated route planning
b) Manual shipment tracking
c) Reduced product handling times
d) Decreased driver oversight
Answer: a) Automated route planning
12. Question: What is the role of geofencing technology in cargo security?
a) It increases the size of delivery areas
b) It tracks vehicles within a predefined boundary
c) It speeds up the delivery process by avoiding traffic
d) It reduces the need for real-time GPS systems
Answer: b) It tracks vehicles within a predefined boundary
13. Question: Which of the following is not a primary benefit of blockchain in freight
systems?
a) Enhanced transparency
b) Faster transit times
c) Reduced fraud
d) Secure information sharing
Answer: b) Faster transit times
14. Question: Which technology is most associated with cargo security innovations?
a) Blockchain
b) Autonomous vehicles
c) IoT sensors
d) TMS
Answer: c) IoT sensors
15. Question: How is blockchain expected to impact global supply chains financially?
a) By decreasing operational costs through reduced fraud
b) By increasing costs through higher security measures
c) By eliminating small businesses from the market
d) By removing the need for transportation documentation
Answer: a) By decreasing operational costs through reduced fraud
CHƯƠNG 4:
1. True/False Questions :

1. Question: Cost-of-service pricing in transportation primarily considers the marginal cost

of moving goods and ignores any demand elasticity.
a) True
b) False
Answer: b) False
2. Question: In a contestable market, entry and exit are costly, and carriers must constantly
adjust their prices to match established firms.
a) True
b) False
Answer: b) False
3. Question: The theory of contestable markets suggests that even a monopolist must price
competitively if the market is easily contestable.
a) True
b) False
Answer: a) True

2. Multiple Choice Questions:

4. Question: What is one of the primary challenges associated with cost-of-service

pricing?
a) It simplifies pricing decisions for carriers
b) It ignores the demand side and customer price elasticity
c) It leads to underpricing in monopolistic markets
d) It increases market competition
Answer: b) It ignores the demand side and customer price elasticity
5. Question: In value-of-service pricing, how are high-value goods typically treated?
a) They are charged higher rates due to higher transportation risks and costs
b) They are given discounts to attract more volume
c) They are treated equally with low-value goods
d) They are always transported via the cheapest route available
Answer: a) They are charged higher rates due to higher transportation risks and costs
6. Question: Yield management pricing, commonly used in airline pricing, involves:
a) Overbooking and adjusting prices based on projected demand
b) Eliminating discounts for bulk shipments
c) Setting prices strictly based on distance traveled
d) Maintaining constant rates regardless of capacity
Answer: a) Overbooking and adjusting prices based on projected demand
7. Question: What does cost-of-service pricing focus on in transportation?
a) Market demand and customer preferences
b) Marginal and average costs of service provision
 c) Customer willingness to pay
d) Historical price trends
Answer: b) Marginal and average costs of service provision
8. Question: Which market structure is characterized by many small buyers and sellers,
with no individual player able to influence the market price?
a) Monopolistic competition
b) Pure competition
c) Oligopoly
d) Monopoly
Answer: b) Pure competition
9. Question: What is a significant disadvantage of relying solely on cost-of-service
pricing in transportation?
a) It underestimates the cost of operations
b) It can result in prices that ignore market demand
c) It reduces competition between carriers
d) It forces carriers to price at a loss
Answer: b) It can result in prices that ignore market demand
10. Question: Which of the following is not a component of yield management pricing in
the airline industry?
a) Overbooking
b) Seat allocation
c) Real-time rate adjustment
d) Cargo weight limitations
Answer: d) Cargo weight limitations
11. Question: Price discrimination in transportation allows a carrier to:
a) Charge uniform rates regardless of the product's value
b) Charge different rates for the same service based on customer willingness to pay
c) Ignore the cost of providing the service
d) Prevent competition by lowering rates
Answer: b) Charge different rates for the same service based on customer willingness to
pay
12. Question: In value-of-service pricing, what often justifies higher transportation rates for
certain goods?
a) The mode of transportation used
b) The fixed costs associated with transport
c) The value and risk associated with the goods being moved
d) The level of market competition
Answer: c) The value and risk associated with the goods being moved
13. Question: In cost-based pricing, the primary pricing floor is set by:
a) Marginal cost
b) The highest competitive price
c) Historical price trends
d) Customer preferences
Answer: a) Marginal cost
14. Question: What is the impact of deregulation on transportation pricing?
a) Carriers have more flexibility to set prices based on market forces
 b) Prices became fixed and standardized across the industry
c) Price competition was eliminated
d) Government agencies now determine most pricing structures
Answer: a) Carriers have more flexibility to set prices based on market forces
15. Question: Which pricing strategy involves charging different prices for the same service,
depending on the perceived value of the product being transported?
a) Cost-of-service pricing
b) Value-of-service pricing
c) Uniform pricing
d) Competitive pricing
Answer: b) Value-of-service pricing

CHƯƠNG 6:

1. True/False Questions :

1. Question: Railroads still dominate the freight market in terms of revenue compared to
other transportation modes.
a) True
b) False
Answer: b) False
2. Question: Railroads are more energy-efficient than motor carriers when measured in
terms of consumption per ton-mile.
a) True
b) False
Answer: a) True
3. Question: Intermodal competition has decreased since World War II due to the
increasing number of railroads serving the same regions.
a) True
b) False
Answer: b) False

2. Multiple Choice Questions:

4. Question: What is a key challenge faced by the railroad industry related to its fixed
costs?
a) Increasing labor wages
b) Maintenance and operation of rights-of-way
c) Competition with air freight
d) Lack of capital investment
Answer: b) Maintenance and operation of rights-of-way
5. Question: Which of the following commodities is not typically hauled by railroads?
a) Coal
b) Automobiles
 c) Electronics
d) Grain
Answer: c) Electronics
6. Question: Which of the following describes the current market structure of the U.S.
railroad industry?
a) Monopolistic competition
b) Pure competition
c) Differentiated oligopoly
d) Monopoly
Answer: c) Differentiated oligopoly
7. Question: What impact did the Staggers Rail Act of 1980 have on the U.S. railroad
industry?
a) It led to more stringent economic regulation.
b) It decreased the number of small railroads.
c) It provided railroads with greater pricing flexibility.
d) It eliminated competition from other transportation modes.
Answer: c) It provided railroads with greater pricing flexibility
8. Question: In the railroad industry, unit trains are designed to:
a) Carry multiple types of commodities across different locations.
b) Transport only one commodity directly from origin to destination.
c) Provide rapid transit services for passengers.
d) Reduce backhauls by maximizing the volume of mixed goods.
Answer: b) Transport only one commodity directly from origin to destination
9. Question: Which of the following was not a major factor contributing to the decline of
railroad mileage in the U.S.?
a) Technological advances
b) Increased use of intermodal competition
c) Abandonment of duplicate trackage
d) Expensive fuel costs
Answer: d) Expensive fuel costs
10. Question: What is the primary reason railroads are able to compete effectively over long
distances?
a) Access to more diverse cargo
b) Low cost of labor
c) Economies of scale in freight train operations
d) High speed of delivery
Answer: c) Economies of scale in freight train operations
11. Question: How has the number of Class I railroads changed in recent decades?
a) It has remained the same.
b) It has decreased significantly.
c) It has increased rapidly.
d) It fluctuates annually.
Answer: b) It has decreased significantly
12. Question: Which of the following best describes intermodal competition in the railroad
industry?
a) Competition between different railroad companies within the same region
 b) Competition between railroads and other modes of transportation such as motor
carriers
c) Competition for government subsidies
d) Competition for passenger transportation
Answer: b) Competition between railroads and other modes of transportation such as
motor carriers
13. Question: What is the primary constraint faced by railroads in providing door-to-door
service?
a) Lack of sufficient labor
b) Fixed rights-of-way
c) High fuel consumption
d) Government regulations
Answer: b) Fixed rights-of-way
14. Question: What is one of the primary advantages of rail transportation for freight?
a) High flexibility in short-distance delivery
b) Ability to handle large-volume movements of low-value commodities
c) Lowest fixed costs among all modes of transportation
d) Rapid delivery of perishable goods
Answer: b) Ability to handle large-volume movements of low-value commodities
15. Question: The railroad industry's cost structure is characterized by a high proportion of
fixed costs due to:
a) Fuel and labor costs
b) Rolling stock and terminal facilities
c) Government subsidies
d) Transportation of high-value goods
Answer: b) Rolling stock and terminal facilities

CHƯƠNG 7:
1. True/False Questions:

1. Question: Airlines provide more freight service on a ton-mile basis than railroads due to
their speed and cost advantages.
a) True
b) False
Answer: b) False
2. Question: The introduction of NextGen technology in air traffic control will allow for
more efficient flight routes and reduced airspace congestion.
a) True
b) False
Answer: a) True
3. Question: The Airline Deregulation Act of 1978 led to fewer new entrants in the hub-
and-spoke market structure of airlines.
a) True
 b) False
Answer: a) True

2. Multiple Choice Questions:

4. Question: What is a key advantage of the hub-and-spoke system used by major airlines?
a) Reduced travel time for passengers
b) Enhanced ability to serve more destinations from central hubs
c) Lower fuel consumption per flight
d) Increased pilot labor costs
Answer: b) Enhanced ability to serve more destinations from central hubs
5. Question: Which of the following is a challenge for airlines when serving shorter routes?
a) Higher passenger capacity per flight
b) High takeoff and landing costs relative to travel distance
c) Increased economies of scale for short-haul flights
d) Limited passenger demand
Answer: b) High takeoff and landing costs relative to travel distance
6. Question: Economies of density in the airline industry refer to:
a) The ability to reduce costs by flying fewer passengers per flight
b) The capacity to fully utilize aircraft on high-demand routes with limited backhaul
potential
c) The cost advantage of serving dense, high-traffic routes efficiently
d) The reduced need for airports in low-traffic regions
Answer: c) The cost advantage of serving dense, high-traffic routes efficiently
7. Question: Which of the following is not a factor influencing air freight rates?
a) Fuel surcharges
b) Value and perishability of goods
c) Density and weight of shipments
d) Speed of ground transportation alternatives
Answer: d) Speed of ground transportation alternatives
8. Question: How does NextGen technology impact the efficiency of the airspace system?
a) It reduces the need for human air traffic controllers.
b) It allows for multiple flight paths and altitudes between destinations.
c) It increases air congestion in major city corridors.
d) It prioritizes shorter flights over longer ones.
Answer: b) It allows for multiple flight paths and altitudes between destinations
9. Question: Which of the following is the primary reason airlines rely on fuel hedging
strategies?
a) To decrease airport congestion fees
b) To protect against sudden increases in fuel prices
c) To reduce the cost of pilot labor
d) To lower maintenance expenses on aircraft
Answer: b) To protect against sudden increases in fuel prices
10. Question: Which of the following carriers focuses primarily on cargo transportation
rather than passengers?
a) Southwest
 b) Delta
c) UPS
d) JetBlue
Answer: c) UPS
11. Question: What is the primary operating constraint for airlines offering international
service?
a) Government regulations and route approvals
b) Lack of available aircraft
c) Limited demand for long-distance flights
d) Excess fuel reserves
Answer: a) Government regulations and route approvals
12. Question: The cost structure of airlines is heavily influenced by which of the following?
a) Low fixed costs and high variable costs
b) High fixed costs and high variable costs
c) Low fuel consumption
d) No economies of scale in aircraft size
Answer: b) High fixed costs and high variable costs
13. Question: Which of the following factors most affects airline pricing for passengers?
a) Weight of passengers' luggage
b) Seat availability on the specific flight
c) Maintenance costs of the airplane
d) Pilot wages
Answer: b) Seat availability on the specific flight
14. Question: In terms of freight transportation, which of the following commodities is
most commonly shipped by air?
a) Automobiles
b) High-value electronics
c) Coal
d) Construction materials
Answer: b) High-value electronics
15. Question: What has been the impact of airline deregulation on intermodal
competition?
a) It decreased competition with motor carriers.
b) It enhanced competition with other modes for high-value goods.
c) It reduced the overall number of flights available to passengers.
d) It eliminated competition from railroads.
Answer: b) It enhanced competition with other modes for high-value goods

CHUONG 8:
1. True/False Questions:

1. Question: Water carriers offer high-speed transit times comparable to air and motor
carriers.
 a) True
b) False
Answer: b) False
2. Question: The cost structure of water carriers involves low fixed costs because the right-
of-way is provided by the government.
a) True
b) False
Answer: a) True
3. Question: Pipelines face substantial intermodal competition from motor carriers for the
transportation of oil.
a) True
b) False
Answer: b) False

2. Multiple Choice Questions:

4. Question: Which of the following commodities is primarily transported by pipelines in

the United States?
a) Grain
b) Crude oil
c) Automobiles
d) Electronic goods
Answer: b) Crude oil
5. Question: What is a significant service disadvantage of water carriers compared to
other transportation modes?
a) High variable costs
b) Poor fuel efficiency
c) Slow transit times and weather disruptions
d) Limited capacity for bulk goods
Answer: c) Slow transit times and weather disruptions
6. Question: The majority of water carrier operations in the U.S. involve the transport of:
a) High-value consumer goods
b) Bulk liquids such as petroleum and chemicals
c) Fragile electronic products
d) Agricultural machinery
Answer: b) Bulk liquids such as petroleum and chemicals
7. Question: What is one of the primary operating characteristics of pipelines?
a) Bidirectional flow of goods
b) High labor intensity
c) Unidirectional flow with steady, slow movement of goods
d) High vulnerability to weather conditions
Answer: c) Unidirectional flow with steady, slow movement of goods
8. Question: Which of the following types of water carriers operate along coasts,
connecting ports on the Atlantic or Pacific oceans?
a) Inland carriers
b) Intercoastal carriers
 c) Coastal carriers
d) Lake carriers
Answer: c) Coastal carriers
9. Question: Pipelines are unique among transportation modes because they:
a) Require no energy to operate
b) Have no backhaul capacity
c) Primarily carry finished goods
d) Rely on manual labor for product movement
Answer: b) Have no backhaul capacity
10. Question: Which of the following factors has contributed to the decline of water carrier
services in the 20th century?
a) Increased cost of fuel
b) Decline in global trade
c) Development of alternative transportation modes such as rail and motor carriers
d) Reduction in government subsidies
Answer: c) Development of alternative transportation modes such as rail and motor
carriers
11. Question: What makes water carriers an attractive option for shippers of bulk goods?
a) High speed and accessibility
b) Low transportation rates
c) Direct delivery to all inland regions
d) High frequency of service
Answer: b) Low transportation rates
12. Question: What is the primary challenge for pipelines in maintaining low transportation
costs?
a) High labor costs
b) Limited geographic reach
c) High capital investment in infrastructure
d) Dependence on government subsidies
Answer: c) High capital investment in infrastructure
13. Question: In the U.S., which type of water carrier accounts for the majority of freight
revenue?
a) Coastal carriers
b) Inland river carriers
c) Great Lakes carriers
d) Oceanic carriers
Answer: b) Inland river carriers
14. Question: What role do gathering pipelines play in the transportation of oil?
a) They transport refined oil products to consumer markets
b) They move crude oil from production sites to storage areas
c) They distribute gasoline to retail stations
d) They carry natural gas to industrial facilities
Answer: b) They move crude oil from production sites to storage areas
15. Question: Which of the following best describes the cost structure of the water carrier
industry?
a) High fixed costs and low variable costs
b) Low fixed costs and low variable costs
c) High variable costs and low fixed costs
d) High labor costs and low fuel costs
Answer: b) Low fixed costs and low variable costs