631ex1.rvw
Econ 631
Principles of Transportation
Review Questions - First Exam
Dr. Babcock Spring 2008
1. What are the major economic impacts of transportation on the economy?
2. What are the principal social, political, and environmental effects of transportation?
3. What impact does transportat ion have on firm decisi on making?
4. What is the difference between a for hire carrier and private transport?
5. What are the market share trends in the for hire freight market; the for hire passenger market
in the post 1980 period?
6. How is freight and passenger demand measured?
7. What is the difference between aggregate, modal, and carrier demand? How do price and
service elasticities change as the level of demand aggregation changes?
8. Explain the concept of derived demand for freight transportation.
9. What are the service components of freight demand and why are each of these important to
freight service users?
10. What are the different intercity, long distance, passenger groups and what are the
transportation demand characteristics of each group?
11. What are the major economic variables that influence firm location?
12. Define procurement cost, distribution cost, terminal cost, and total transport cost.
13. Using a transportation cost model of location, under what conditions would the firm locate at
a raw materials site; at the market?
14. Define weight gaining and weight losing production processes and give examples.
15. What impact do plant prices and transport rates have on producer's market areas?
16. What impact does product differentiation have on producer's market area? What effect does
industry wide uniform pricing have?
