1 | Page
LGAV 3120 Midterm Exam Questions and
Correct Answers
1. As equal quantities of a variable factor are increased and other
factors remain constant, a point is reached beyond which the
addition of one more unit of the variable factor will result in a
diminishing rate of return. This is the definition of ____________
a. Diseconomy of scale
b. Opportunity cost
c. Indirect cost
d. Direct cost Ans: a. Diseconomy of scale
1. Indirect costs do NOT include
a. Managing
b. Training
c. Aircraft operating costs
d. Lawsuit settlements Ans: c. Aircraft operating costs
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, 2 | Page
1. Scarce Resources refer to _____________
a. Finite and limited resources
b. Assets
c. Employees and Top Decision-Making Teams
d. Available resources Ans: a. Finite and limited resources
1. Direct costs are ______________
a. A real cost of something is what you give up in order obtain it
b. Costs directly connected to the development and production of
a specific product
c. The costs that are present but not associated directly with the
development and production of a specific product
d. Costs for technology, training, managing, and litigation, lawsuit
settlements, rising insurance costs, erosion of public confidence
and perception, investigation, corrective actions, and fines. Ans:
b. Costs directly connected to the development and production of
a specific product
© 2025 All rights reserved
, 3 | Page
1. Which of the following is true for Utilitarianism?
a. Utilitarianism has two formulations developed by Immanuel
Kant.
b. Utilitarianism grants people certain basic privileges associated
with being human
c. Utilitarianism refers to the real cost of something is what you
give up in order obtain it.
d. Utilitarianism is the concept of doing what is perceived to be
best for the greatest number of people Ans: d. Utilitarianism is
the concept of doing what is perceived to be best for the greatest
number of people
2. The law that requires airlines to provide "reasonable
accommodation" is called the _________________.
a. Air Carrier Access Act
b. Federal Air Marshals
c. Transportation Security Administration
© 2025 All rights reserved
LGAV 3120 Midterm Exam Questions and
Correct Answers
1. As equal quantities of a variable factor are increased and other
factors remain constant, a point is reached beyond which the
addition of one more unit of the variable factor will result in a
diminishing rate of return. This is the definition of ____________
a. Diseconomy of scale
b. Opportunity cost
c. Indirect cost
d. Direct cost Ans: a. Diseconomy of scale
1. Indirect costs do NOT include
a. Managing
b. Training
c. Aircraft operating costs
d. Lawsuit settlements Ans: c. Aircraft operating costs
© 2025 All rights reserved
, 2 | Page
1. Scarce Resources refer to _____________
a. Finite and limited resources
b. Assets
c. Employees and Top Decision-Making Teams
d. Available resources Ans: a. Finite and limited resources
1. Direct costs are ______________
a. A real cost of something is what you give up in order obtain it
b. Costs directly connected to the development and production of
a specific product
c. The costs that are present but not associated directly with the
development and production of a specific product
d. Costs for technology, training, managing, and litigation, lawsuit
settlements, rising insurance costs, erosion of public confidence
and perception, investigation, corrective actions, and fines. Ans:
b. Costs directly connected to the development and production of
a specific product
© 2025 All rights reserved
, 3 | Page
1. Which of the following is true for Utilitarianism?
a. Utilitarianism has two formulations developed by Immanuel
Kant.
b. Utilitarianism grants people certain basic privileges associated
with being human
c. Utilitarianism refers to the real cost of something is what you
give up in order obtain it.
d. Utilitarianism is the concept of doing what is perceived to be
best for the greatest number of people Ans: d. Utilitarianism is
the concept of doing what is perceived to be best for the greatest
number of people
2. The law that requires airlines to provide "reasonable
accommodation" is called the _________________.
a. Air Carrier Access Act
b. Federal Air Marshals
c. Transportation Security Administration
© 2025 All rights reserved
