2.3.1- Chapter 3 Key Terms and Study Questions
Federal Energy Regulatory Commission- The federal agency that oversees rates and
practices of pipeline operators and is part of the Department of energy
Federal Motor Carrier Safety Administration- Federal agency, created in 2000, whose
primary mission is to reduce crashes, injuries, fatalities, and property loss involving large
trucks and buses by regulating workers involved.
Maritime Administration- the United States Maritime Administration is an agency of
the United States Department of Transportation, the mission of the Maritime
Administration is to promote the development and maintenance of an adequate, well-
balanced United States merchant marine.
Surface Transportation Board- The agency created under the interstate Commerce
Commission Termination (ICC) to replace the ICC and exercise economic jurisdiction of
the modes of transportation.
United States Department of Transportation- A Federal Cabinet department of the
U.S. government, established in 1966, that is concerned with transportation.
1. Discuss the rationale for the economic regulation of transportation.
The imperfections in the marketplace in a free enterprise economy provide the rationale for
government control to prevent a monopoly. The control by the government included maintaining
or enforcing competition, an example would be the antitrust laws set forth by government.
Substitute economic regulation for competition as it has done in the transportation industry and
assume ownership and direct control as it has done with the US Post office.
5. Why does the United States need a national transportation policy? What purpose does it
serve?
The United States need a national transportation policy because transportation is
significant to the very life of this country According to Coyle, Novack, Gibson & Bardi “ The
transportation system ties together the various communities of our country, making possible the
movement of people goods and services” ( Coyle, Novack, Gibson & Bardi, 2013, pg.67 and 68).
It permits a sense of unity. It is the fundamental to the economic activity of the country. It
furthers economic activity, which is the exchange of goods that are massed produced in one
location to another location. Creates jobs, improve goods and services is fundamental to our
national defense. The purpose of the transportation policy is to provide direction for determining
Federal Energy Regulatory Commission- The federal agency that oversees rates and
practices of pipeline operators and is part of the Department of energy
Federal Motor Carrier Safety Administration- Federal agency, created in 2000, whose
primary mission is to reduce crashes, injuries, fatalities, and property loss involving large
trucks and buses by regulating workers involved.
Maritime Administration- the United States Maritime Administration is an agency of
the United States Department of Transportation, the mission of the Maritime
Administration is to promote the development and maintenance of an adequate, well-
balanced United States merchant marine.
Surface Transportation Board- The agency created under the interstate Commerce
Commission Termination (ICC) to replace the ICC and exercise economic jurisdiction of
the modes of transportation.
United States Department of Transportation- A Federal Cabinet department of the
U.S. government, established in 1966, that is concerned with transportation.
1. Discuss the rationale for the economic regulation of transportation.
The imperfections in the marketplace in a free enterprise economy provide the rationale for
government control to prevent a monopoly. The control by the government included maintaining
or enforcing competition, an example would be the antitrust laws set forth by government.
Substitute economic regulation for competition as it has done in the transportation industry and
assume ownership and direct control as it has done with the US Post office.
5. Why does the United States need a national transportation policy? What purpose does it
serve?
The United States need a national transportation policy because transportation is
significant to the very life of this country According to Coyle, Novack, Gibson & Bardi “ The
transportation system ties together the various communities of our country, making possible the
movement of people goods and services” ( Coyle, Novack, Gibson & Bardi, 2013, pg.67 and 68).
It permits a sense of unity. It is the fundamental to the economic activity of the country. It
furthers economic activity, which is the exchange of goods that are massed produced in one
location to another location. Creates jobs, improve goods and services is fundamental to our
national defense. The purpose of the transportation policy is to provide direction for determining
