1.
What is meant by a “cross-trading” nation?
a.
one engaged in cross-border trade
b.
one active in trading with neighboring countries
c.
one which facilitates the movement of goods between two other nations
d.
one which trades with undesirable nation
2.
What act required ships used in U.S. domestic trades to be built in the U.S.?
a.
Elkins Act
b.
Transportation Act of 1920
c.
Reed-Bulwinkle Act
d.
Jones Act
3.
_______________ is the US’s largest trading partner.
a.
Mexico
b.
Japan
c.
Great Britain
d.
Canada
4.
In the U.S., _________________ is responsible for dredging harbors and navigation channels.
a.
water carriers
b.
local governments
c.
U.S. Army Corps of Engineers
d.
port authorities
5.
A manager may pay more for one element of service in order to save an even larger amount on a
different element. This is called _____________.
a.
suboptimization
b.
cost tradeoff
c.
supply chain management
d.
efficient consumer response
6.
A completed charter agreement or contract is known as a _______________.
a.
bill of lading
b.
fixture
c.
certificate of origin
d.
charter document
e.
none of the above
7.
Credits for handling vessels more quickly than agreed to are known as __________.
a.
despatch
b.
transit privileges
c.
demurrage
d.
shipbreaking
8.
Bunkers refer to _____________.
a.
hidden storage places in ships.
b.
low value cargo
c.
specialized cargo handling equipment
d.
fuel used for ships’ engines
e.
none of the above
9.
A “schedule b” number refers to _____________.
a.
the U.S. government statistical classification of goods for export
b.
tariffs which must be paid on imports
c.
tariffs which must be paid on exports
d.
the value of a particular shipment
e.
none of the above
10.
Shipbreaking refers to _________.
a.
the movement of ships in a narrow waterway
b.
break-bulk movements by water carriers
c.
the break in period for new ships
d.
the scrapping of older ships
e.
none of the above
11.
__________ refers to the concept where shippers faced the same rail-water port total costs no
matter which routing was selected:
a.
rate equalization
b.
import/export rates
c.
basing point pricing
d.
rate smoothing
12.
A ______________ is a COFC shipment that originates or terminates in a U.S. port other than the
one where they enter or leave the country:
a.
maxi-bridge
c.
micro-bridge
b.
mini-bridge
d.
multibridge
13.
A maquilador refers to
a.
a large Mexican multinational corporation
b. a Mexican third-party logistics firm
c. managers at Mexican transportation companies
d. manufacturing and assembly operations just south of the U.S – Mexican border
14.
A major port where thousands of containers arrive and depart per week is knows as a:
a.
distribution center
b.
mega-port
c.
load center
d.
Class I port
15.
The Channel Tunnel links which two countries?
a.
England, France
c.
b.
U.S., Canada
d.
China, Taiwan
Italy, Spain
16.
All of the following are objectives of the DOT except:
a.
stimulating technological advances
b.
providing general leadership
c.
coordinating transportation service
d.
ensuring full employment in the transportation sector of the economy
17.
When aircraft are flown by professional pilots for business purposes, and not for compensation or
hire, it is considered:
a.
business aircraft use
c.
rental aircraft use
b.
corporate aircraft use
d.
commercial aircraft use
18.
When the FAA is convinced that an aircraft is ready to be manufactured for prospective customers
it issue a:
a.
type certificate
c.
construction certificate
b.
airworthiness certificate
d.
production certificate
19.
The FAA is responsible for all of the following functions except
a.
issuing a production certificate
b.
certification of mechanic schools
c.
reviewing appeals from airmen whose certificates have been revoked or suspended
d.
certificate of parachute riggers
20.
The term “active” aircraft means:
a.
certified as eligible to fly
b.
it must have a current U.S. registration and have been flown during the previous calendar
year
c.
it must have a current U.S. registration
d.
certified as eligible to fly but has not necessarily flown during the previous calendar year
21.
“Mutual dependence” means that:
a.
each firms sells a product similar to but not identical with the products of its rivals
b.
each firm sells a product identical to that of its rivals
c.
each firm must consider the reactions of its rivals when it determines its price policy
d.
each firm has unlimited demand for its products
22.
All of the following are characteristics of oligopolistic firms except:
a.
many firms in the marketplace
b.
economies of scale
c.
growth through merger
d.
extensive non-price competition
23.
Load factors expresses the relationship between:
a.
available seat miles and revenue passenger miles
b.
revenue aircraft miles and available ton miles
c.
revenue ton miles and revenue passengers enplaned
d.
available seat miles and revenue passengers enplaned
24.
Economies of Scale mean:
a.
cross-utilization of workers
b.
lower costs per unit of output
c.
lower total costs
d.
none of the above
25.
Which of the following economic characteristics is not unique to the airlines?
a.
high cost of technology
b.
government financial assistance
c.
high technological turnover
d.
close government regulation
26.
The law of demand states that:
a.
customers will purchase more tickets at high prices than they will at low prices
b.
price and quantity demanded are directly related
c.
the larger the number of buyers in a market, the lower will be the ticket price
d.
price and quantity demanded are inversely related
27.
The demand for air transportation is said to be inelastic if:
a.
a drop in price increases total revenue
b.
the elasticity coefficients greater than 1
c.
an increase in price increases total revenue
d.
an increase in price brings about a larger percentage decline in passengers
28.
The factor that will not cause the demand for air travel on a particular route to change is:
a.
passengers’ expectations with respect to future prices
b.
a change in the price of air travel
c.
an increase in the number of passengers
d.
a decrease in disposable income
29.
A decrease in fares by Airline A on a particular route will:
a.
shift the demand curve for Airline B (flying the same route) to the right
b.
not affect the demand curve for Airline B
c.
shift the demand curve for Airline B (flying the same route) to the left
d.
cause the demand curve for Airline B to become vertical
30.
Marketing air transportation services is somewhat unique compared to other industries. Which of
the following is not a characteristic of the airline industry?
a.
the service cannot be inventoried to match fluctuation in demand
b.
there is no equivalent of “replacement of a bad product”
c.
it is easy to check the quality of the product prior to the final sale
d.
service is usually personalized
31.
Each of the following factors have significantly altered the face of transportation except
a.
deregulation
c.
just-in-time inventory systems
b.
fuel price increases
d.
the globalization of business
32.
The two major U.S. Supreme Court cases that led the way to federal legislation regulating
railroads were:
a.
Munn v. Illinois and Pullman v. Baldwin
b.
Pullman v. Illinois and Dred Scott
c.
Wabash and Munn v. Illinois
d.
Shreveport v. Jefferson Davis, et al.
33.
Each of the following groups is part of the U.S. Department of Transportation except
a.
Civil Aeronautics Board
b.
Federal Aviation Administration
c.
Federal Highway Administration
d.
Federal Transit Administration
34.
With regard to price elasticity, pleasure travel is _________, whereas business travel is
considered ________________.
a.
price elastic, price inelastic
b.
price inelastic, price elastic
c.
price inelastic, both elastic and inelastic
d.
none of the above
35.
Variable costs in the __________ industry are about the same proportion as fixed costs.
a.
motor carrier
c.
air carrier
b.
railroad
d.
inland water carrier
36.
Each of the following is a fixed cost of the trucking industry except:
a.
license fees
b.
property taxes
c.
terminal expenses
d.
lubricating oil
37.
Which of the following characteristic(s) best describe towboats:
a.
usually used on Inland Waterways
b.
are widely used on the Great Lakes and on the Oceans
c.
They push lashed-together barges
d.
Both b and c
e.
Both a and c
38.
Using accessibility as an indicator of customer service standards, which mode is superior in this
regard:
a.
railroads
b.
motor carriers
c.
pipelines
d.
none of the above
39.
Intermodalism can best be defined as:
a.
an arrangement whereby cargo only is moved via air, rail and ship
b.
an informal agreement to ship bulk cargo to several different locations
c.
the use of two or more different modes, (i.e. rail, ship) to haul either cargo or people
d.
an arrangement to subsidize carriers
40.
All of the following factors have contributed to the decline of long-haul trucking except:
a.
deregulation of the rail industry
b.
double-stacked container trains
c.
deterioration of the nation’s highways
d.
change in allowable trailer width from 96” to 102”
41.
Which is not a traditional actor in the marketing channel?
a.
manufacturer
c.
retailer
b.
wholesaler
d.
venture capitalist
42.
The four basic parts of the marketing mix include all of the following except
a.
place
c.
production
b.
pricing
d.
promotion
43.
Logistics should be part of a company’s corporate strategy because
a.
it affect the company’s overall costs
b.
it is one of a company’s systems, al of which should be synchronized
c.
given a competitive environment, other companies are often using logistics as a valueadded service
d.
all of the above
44.
In FOB origin pricing, all of the following are true except
a.
prices quoted to not include transportation to the consignee
b.
consignees must arrange for the transportation of the purchased product
c.
title usually passes to the consignee when the product is delivered to their receiving dock
d.
the seller always received the same net from each sale
45.
The term “landed” prices indicates:
a.
a product that is quoted C.O.D. (cost on delivery)
b.
a price that includes both the cost of the product plus transportation to the buyer
c.
a prepaid shipment
d.
a product that is shipped via surface transport
46.
The order cycle is composed of each of the following except:
a.
order picking
b.
order delivery
c.
order retrieval
d.
order transmittal
e.
order processing
47.
Which of the following is NOT an input into a good’s freight classification?
a.
density of the product
b.
ease of difficulty of handling
c.
liability to damage and theft
d.
location of the good
48.
When possible, unit loads should be priced to encourage the buyer to purchase a(n) _______equal
to the unit load:
a.
order quantity
b.
even number
c.
odd number
d.
mixed number
49.
Freight classifications:
a.
dictate the packaging of the product
b.
influence distribution costs for the product
c.
reflect a product’s handling characteristics
d.
all of the above
50.
____________ are inflatable and their purpose is to hold cargo securely in place in order to reduce
loss and damage claims.
a.
damage bags
b.
dunnage bags
c.
PEB bags
d.
Los Angeles specials