MKTG 372 EXAM 3 OLE MISS QUESTIONS AND
ANSWERS 2026
Chapter 14
Multiple Choice
1) The movement of product from one location to another as it makes its way from the
beginning of a supply chain to the customer's hands is referred to as
A) transportation.
B) retailing.
C) distribution.
D) manufacturing. - Answers -A) transportation.
2) Transportation plays a key role in every supply chain because
A) products are normally produced and consumed in the same location.
B) products are rarely produced and consumed in the same location.
C) the cost of transportation is inconsequential.
D) transportation is not a factor in determining profitability. - Answers -B) products are
rarely produced and consumed in the same location
3) The key players in any transportation that takes place within a supply chain are
A) the shipper and the receiver.
B) the shipper and the supplier.
C) the shipper and the manufacturer.
D) the shipper and the carrier. - Answers -D) the shipper and the carrier.
4) Investment decisions regarding the transportation infrastructure (rails, locomotives,
trucks, airplanes, etc.) are the primary concern of
A) the shipper.
B) the supplier.
C) the manufacturer.
D) the carrier. - Answers -D) the carrier.
5) Which of the following uses transportation to minimize the total cost (transportation,
inventory, information, and facility) while providing an appropriate level of
responsiveness to the customer?
A) The shipper
B) The supplier
,C) The manufacturer
D) The carrier - Answers -A) The shipper
6) The ________ is the party that requires the movement of the product between two
points in the supply chain.
A) carrier
B) producer
C) shipper
D) consumer - Answers -C) shipper
7) The ________ is the party that moves or transports the product.
A) carrier
B) producer
C) shipper
D) consumer - Answers -A) carrier
8) Which of the following is the fastest delivery method of transportation?
A) Rail
B) Truck
C) Air
D) Intermodal - Answers -C) Air
9) ________ carriers offer a very fast and fairly expensive mode of transportation for
cargo.
A) Air
B) Truck
C) Rail
D) Water - Answers -A) Air
10) ________ typically move commodities over large distances at lower costs per unit
shipped.
A) Air
B) Truck
C) Rail
D) Package carriers - Answers -C) Rail
11) ________ are the preferred mode of transport for online businesses such as
Amazon.com and Dell, as well as for companies such as W.W. Grainger and McMaster-
Carr that send small packages to customers.
A) Air
,B) Package carriers
C) Rail
D) Water - Answers -B) Package carriers
12) Which mode of transportation is the most expensive?
A) Air
B) Truck
C) Rail
D) Water - Answers -A) Air
13) Which mode of transportation is the least expensive?
A) Air
B) Truck
C) Rail
D) Water - Answers -D) Water
14) Which mode of transportation is the dominant form of freight transportation?
A) Air
B) Truck
C) Rail
D) Water - Answers -B) Truck
15) Which mode of transportation is used primarily for petroleum and natural gas?
A) Air
B) Truck
C) Water
D) Pipeline - Answers -D) pipeline
16) In almost all countries, roads, seaports, airports, rail and canals have this in
common.
A) They were built and/or managed by the government.
B) They are located near the water.
C) They are the source of most of the tax revenue for municipalities.
D) They are staffed by foreign nationals. - Answers -A) They were built and/or
managed by the government.
17) Suppose that a highway is governed by a use fee charged to motorists that is based
on congestion, operation and maintenance. The total traffic t is used to determine the
cost of 5t^2. What is the average cost per motorist?
A) 2.5
, B) 5
C) 5t
D) 2.5t - Answers -C) 5t
18) Suppose that a highway is governed by a use fee charged to motorists that is based
on congestion, operation and maintenance. The total traffic t is used to determine the
cost of 5t^2. What is the marginal cost?
A) 5
B) 5t
C) 10
D) 10t - Answers -D) 10t
19) Suppose that a highway is governed by a use fee charged to motorists that is based
on congestion, operation and maintenance. The total traffic t is used to determine the
cost of 5t^2 + 7t. What is the average cost per motorist?
A) 12
B) 5t + 7
C) 10
D) 10t + 7 - Answers -B) 5t + 7
20) Suppose that a highway is governed by a use fee charged to motorists that is based
on congestion, operation and maintenance. The total traffic t is used to determine the
cost of 5t^2 + 7t. What is the marginal cost?
A) 12
B) 5t + 7
C) 10
D) 10t + 7 - Answers -D) 10t + 7
21) Which of these statements about use fees for a highway is best?
A) A flat rate results in lower use by most individuals.
B) A flat rate results in higher use by most individuals.
C) A flat rate has no impact on use by most individuals.
D) A fee based on congestion results in higher use by most individuals. - Answers -B) A
flat rate results in higher use by most individuals.
22) When infrastructure is publicly owned, it is important to price usage to reflect
A) the cost of rebuild the infrastructure once it is fully depreciated.
B) the incremental profit from the use of the infrastructure.
C) the marginal impact on the cost to society.
D) the market clearing price. - Answers -C) the marginal impact on the cost to society.
ANSWERS 2026
Chapter 14
Multiple Choice
1) The movement of product from one location to another as it makes its way from the
beginning of a supply chain to the customer's hands is referred to as
A) transportation.
B) retailing.
C) distribution.
D) manufacturing. - Answers -A) transportation.
2) Transportation plays a key role in every supply chain because
A) products are normally produced and consumed in the same location.
B) products are rarely produced and consumed in the same location.
C) the cost of transportation is inconsequential.
D) transportation is not a factor in determining profitability. - Answers -B) products are
rarely produced and consumed in the same location
3) The key players in any transportation that takes place within a supply chain are
A) the shipper and the receiver.
B) the shipper and the supplier.
C) the shipper and the manufacturer.
D) the shipper and the carrier. - Answers -D) the shipper and the carrier.
4) Investment decisions regarding the transportation infrastructure (rails, locomotives,
trucks, airplanes, etc.) are the primary concern of
A) the shipper.
B) the supplier.
C) the manufacturer.
D) the carrier. - Answers -D) the carrier.
5) Which of the following uses transportation to minimize the total cost (transportation,
inventory, information, and facility) while providing an appropriate level of
responsiveness to the customer?
A) The shipper
B) The supplier
,C) The manufacturer
D) The carrier - Answers -A) The shipper
6) The ________ is the party that requires the movement of the product between two
points in the supply chain.
A) carrier
B) producer
C) shipper
D) consumer - Answers -C) shipper
7) The ________ is the party that moves or transports the product.
A) carrier
B) producer
C) shipper
D) consumer - Answers -A) carrier
8) Which of the following is the fastest delivery method of transportation?
A) Rail
B) Truck
C) Air
D) Intermodal - Answers -C) Air
9) ________ carriers offer a very fast and fairly expensive mode of transportation for
cargo.
A) Air
B) Truck
C) Rail
D) Water - Answers -A) Air
10) ________ typically move commodities over large distances at lower costs per unit
shipped.
A) Air
B) Truck
C) Rail
D) Package carriers - Answers -C) Rail
11) ________ are the preferred mode of transport for online businesses such as
Amazon.com and Dell, as well as for companies such as W.W. Grainger and McMaster-
Carr that send small packages to customers.
A) Air
,B) Package carriers
C) Rail
D) Water - Answers -B) Package carriers
12) Which mode of transportation is the most expensive?
A) Air
B) Truck
C) Rail
D) Water - Answers -A) Air
13) Which mode of transportation is the least expensive?
A) Air
B) Truck
C) Rail
D) Water - Answers -D) Water
14) Which mode of transportation is the dominant form of freight transportation?
A) Air
B) Truck
C) Rail
D) Water - Answers -B) Truck
15) Which mode of transportation is used primarily for petroleum and natural gas?
A) Air
B) Truck
C) Water
D) Pipeline - Answers -D) pipeline
16) In almost all countries, roads, seaports, airports, rail and canals have this in
common.
A) They were built and/or managed by the government.
B) They are located near the water.
C) They are the source of most of the tax revenue for municipalities.
D) They are staffed by foreign nationals. - Answers -A) They were built and/or
managed by the government.
17) Suppose that a highway is governed by a use fee charged to motorists that is based
on congestion, operation and maintenance. The total traffic t is used to determine the
cost of 5t^2. What is the average cost per motorist?
A) 2.5
, B) 5
C) 5t
D) 2.5t - Answers -C) 5t
18) Suppose that a highway is governed by a use fee charged to motorists that is based
on congestion, operation and maintenance. The total traffic t is used to determine the
cost of 5t^2. What is the marginal cost?
A) 5
B) 5t
C) 10
D) 10t - Answers -D) 10t
19) Suppose that a highway is governed by a use fee charged to motorists that is based
on congestion, operation and maintenance. The total traffic t is used to determine the
cost of 5t^2 + 7t. What is the average cost per motorist?
A) 12
B) 5t + 7
C) 10
D) 10t + 7 - Answers -B) 5t + 7
20) Suppose that a highway is governed by a use fee charged to motorists that is based
on congestion, operation and maintenance. The total traffic t is used to determine the
cost of 5t^2 + 7t. What is the marginal cost?
A) 12
B) 5t + 7
C) 10
D) 10t + 7 - Answers -D) 10t + 7
21) Which of these statements about use fees for a highway is best?
A) A flat rate results in lower use by most individuals.
B) A flat rate results in higher use by most individuals.
C) A flat rate has no impact on use by most individuals.
D) A fee based on congestion results in higher use by most individuals. - Answers -B) A
flat rate results in higher use by most individuals.
22) When infrastructure is publicly owned, it is important to price usage to reflect
A) the cost of rebuild the infrastructure once it is fully depreciated.
B) the incremental profit from the use of the infrastructure.
C) the marginal impact on the cost to society.
D) the market clearing price. - Answers -C) the marginal impact on the cost to society.
