Transportation 3516 Exam 2
1. INCOTERMS are published by ICC, which stands for:: International Chamber of Commerce
2. Which of the following is not identified as a key global transportation challenge?:
Environmental impact
3. Which of the following is incorrect when defining a milk run:: Milk-run routing substantially
increases the transportation costs.
4. Which term means the ability to reach origin and destination considers the freight modes?:
Accessibility
5. Which of the following Terms of Payment has the least risk to the seller?: -
Cash in Advance
6. Which of the following is not classified as a Logistics Channel Activity?: -
Distribution Channel
7. Which of the following is not one of the export preparation activities?: Mode Selection
8. With respect to global transportation, the events of 9/11 and subsequent pirate attacks .:
shown that there is a delicate balance between trade and security
9. Which of the follow is something INCOTERMs will not do:: Deal with a breach in contract
10.Which of the following statement is true:: Pipeline service is relatively slow and has limited
accessibility.
11.What is a Maquiladora plant?: a manufacturing facility in Mexico where prod- ucts can be
assembled and returned to the U.S. without paying the duty.
12.What is the second step in transportation planning?: Carrier selection
13.What is not a step in transportation decisions?: Customer approach
14.Which INCOTERM is used when the main carrier is paid by the exporter?: C
15.Which type of INCOTERM is used when the importer takes full responsi- bility from the point of
departure?: E
16.The basic types of rates are class, exception and:: Commodity
17.Competition-based pricing is used predominantly:: in oligopolies with a few large service
providers
18.What is the term used to describe the value assigned to the goods or services sold or rented
from one unit of an organization to another?: Transfer price
19.The relevant market structure under deregulation is described by a theory which
substitutes potential competition for the active participation of many sellers. What is this theory
called?: contestable markets
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, Transportation 3516 Exam 2
20.What is the difference between pure competition and monopolistic com- petition?: Under pure
competition there are many sellers and the product is homo- geneous
21.Third degree price discrimination is defined as:: Charging different prices to different firms
who use the same commodity
22.Under transportation regulation, the amount found in a Tariff as payment to a carrier for
performing a given transport service is called a:: Rate
23.How is the Relevant Market Structure in transportation described?: by identifying the relevant
market area for one commodity moving between two points
24.For the theory of contestable markets to work, four conditions have to be met: no barriers to
market entry, no economies of scale present, consumer willingness to switch between carriers, and:
Existing carriers prevented from responding to new entrants' lower prices.
25.Value of service pricing is also called:: Charging all the traffic will bear
26.Which is a distinguishing feature of 'price'?: A value or level that is deter- mined based on
prevailing market forces
27.Value of service pricing is based on the concept which states:: rates should be related to value
of the commodity, the higher to cost of the commodity the higher the rate should be
28.The firm is in a decreasing cost industry, and its prices are based upon strict marginal costs.
The firm experiences a loss. In this case, for the firm to recover its fixed costs, it must use marginal
cost as a floor for its prices,
and:: use the value of service to determine how high above marginal cost the price should be set
29.Differential Pricing segments buyers by commodity, time, individual per- son (under legal
limits), and: Place
30.Common Mistakes in Pricing includes:: A strategy that sets one price for all
31.There are two separate concepts in Cost of Service pricing. They are:: -
Prices based on average or marginal cost
32.Which of the following is not a condition for pure competition?: Involves a heterogeneous
product or service
33.Which is correct regarding value-of-service pricing?: the model considers the ability of the
commodity to bear a charge
34.According to the theory of Relevant Market Areas, pricing in transportation should be: Mode-
specific, Route-specific, Commodity-specific, and: Shipment size-specific
35.Deregulation in transportation means what?: Create market-driven pricing of transportation
services, make them free from regulatory intervention
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5
1. INCOTERMS are published by ICC, which stands for:: International Chamber of Commerce
2. Which of the following is not identified as a key global transportation challenge?:
Environmental impact
3. Which of the following is incorrect when defining a milk run:: Milk-run routing substantially
increases the transportation costs.
4. Which term means the ability to reach origin and destination considers the freight modes?:
Accessibility
5. Which of the following Terms of Payment has the least risk to the seller?: -
Cash in Advance
6. Which of the following is not classified as a Logistics Channel Activity?: -
Distribution Channel
7. Which of the following is not one of the export preparation activities?: Mode Selection
8. With respect to global transportation, the events of 9/11 and subsequent pirate attacks .:
shown that there is a delicate balance between trade and security
9. Which of the follow is something INCOTERMs will not do:: Deal with a breach in contract
10.Which of the following statement is true:: Pipeline service is relatively slow and has limited
accessibility.
11.What is a Maquiladora plant?: a manufacturing facility in Mexico where prod- ucts can be
assembled and returned to the U.S. without paying the duty.
12.What is the second step in transportation planning?: Carrier selection
13.What is not a step in transportation decisions?: Customer approach
14.Which INCOTERM is used when the main carrier is paid by the exporter?: C
15.Which type of INCOTERM is used when the importer takes full responsi- bility from the point of
departure?: E
16.The basic types of rates are class, exception and:: Commodity
17.Competition-based pricing is used predominantly:: in oligopolies with a few large service
providers
18.What is the term used to describe the value assigned to the goods or services sold or rented
from one unit of an organization to another?: Transfer price
19.The relevant market structure under deregulation is described by a theory which
substitutes potential competition for the active participation of many sellers. What is this theory
called?: contestable markets
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5
, Transportation 3516 Exam 2
20.What is the difference between pure competition and monopolistic com- petition?: Under pure
competition there are many sellers and the product is homo- geneous
21.Third degree price discrimination is defined as:: Charging different prices to different firms
who use the same commodity
22.Under transportation regulation, the amount found in a Tariff as payment to a carrier for
performing a given transport service is called a:: Rate
23.How is the Relevant Market Structure in transportation described?: by identifying the relevant
market area for one commodity moving between two points
24.For the theory of contestable markets to work, four conditions have to be met: no barriers to
market entry, no economies of scale present, consumer willingness to switch between carriers, and:
Existing carriers prevented from responding to new entrants' lower prices.
25.Value of service pricing is also called:: Charging all the traffic will bear
26.Which is a distinguishing feature of 'price'?: A value or level that is deter- mined based on
prevailing market forces
27.Value of service pricing is based on the concept which states:: rates should be related to value
of the commodity, the higher to cost of the commodity the higher the rate should be
28.The firm is in a decreasing cost industry, and its prices are based upon strict marginal costs.
The firm experiences a loss. In this case, for the firm to recover its fixed costs, it must use marginal
cost as a floor for its prices,
and:: use the value of service to determine how high above marginal cost the price should be set
29.Differential Pricing segments buyers by commodity, time, individual per- son (under legal
limits), and: Place
30.Common Mistakes in Pricing includes:: A strategy that sets one price for all
31.There are two separate concepts in Cost of Service pricing. They are:: -
Prices based on average or marginal cost
32.Which of the following is not a condition for pure competition?: Involves a heterogeneous
product or service
33.Which is correct regarding value-of-service pricing?: the model considers the ability of the
commodity to bear a charge
34.According to the theory of Relevant Market Areas, pricing in transportation should be: Mode-
specific, Route-specific, Commodity-specific, and: Shipment size-specific
35.Deregulation in transportation means what?: Create market-driven pricing of transportation
services, make them free from regulatory intervention
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