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Chapter 5: Motor Carriers, Exams of Advanced Education

University of OxfordAdvanced Education

Chapter 5: Motor Carriers---------------Chapter 5: Motor Carriers

Typology: Exams

2025/2026

Available from 02/24/2026

Toperthetop
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Chapter 5: Motor Carriers
What is one of the primary reasons for the growth of trucking after World War II? -
correct answer The Interstate Highway System was constructed which allowed
trucks to give faster services over longer distances
What is the primary division between motor carriers? - correct answer For hire and
private
What is a Private Carrier? - correct answer a trucking operation that only hauls
freight for the firm which owns it
What does most of the trucking industry consist of? - correct answer carriers
operating 6 or fewer trucks
There is a relatively small amount of capital required to enter: - correct answer the
truckload industry
What do motor carriers haul primarily? - correct answer various manufactured
commodity categories
What is the status of competition within the motor carrier industry? - correct answer
The industry is highly competitive with competition between all carriers as well as
with firms such as United Parcel Service and FedEx
What is one of the service characteristics of the trucking industry? - correct answer
Truck rates are cheaper than rail or air
What do the users of truck service benefit from? - correct answer lower inventory
levels due to smaller shipments that other modes
LTL carriers must make the same type of equipment decisions as TL along with
deciding: - correct answer where to deploy this equipment
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Chapter 5: Motor Carriers

What is one of the primary reasons for the growth of trucking after World War II? - correct answer The Interstate Highway System was constructed which allowed trucks to give faster services over longer distances What is the primary division between motor carriers? - correct answer For hire and private What is a Private Carrier? - correct answer a trucking operation that only hauls freight for the firm which owns it What does most of the trucking industry consist of? - correct answer carriers operating 6 or fewer trucks There is a relatively small amount of capital required to enter: - correct answer the truckload industry What do motor carriers haul primarily? - correct answer various manufactured commodity categories What is the status of competition within the motor carrier industry? - correct answer The industry is highly competitive with competition between all carriers as well as with firms such as United Parcel Service and FedEx What is one of the service characteristics of the trucking industry? - correct answer Truck rates are cheaper than rail or air What do the users of truck service benefit from? - correct answer lower inventory levels due to smaller shipments that other modes LTL carriers must make the same type of equipment decisions as TL along with deciding: - correct answer where to deploy this equipment

The decision as to terminal location: - correct answer is relatively more difficult for tracking than other modes Which agency within the Department of Transportation governs specifications of trucks such as number of lights, tires and other operating parts? - correct answer Federal Motor Carrier Safety Administration There are several types of truck terminals. Which one is not used by LTL carriers? - correct answer fuel terminals The trucking industry is characterized as having: - correct answer high variable and low fixed costs What is the largest single expense item for trucking firms? - correct answer Labor "There are _____ economies of scale in the trucking industry." - correct answer no major The requirements for a truck driver's license are defined by: - correct answer Federal Motor Carrier Safety Administration Where does funding for highways come from? - correct answer highway user taxes All carriers receive a safety fitness rating. Who makes the inspection and determines the rating? - correct answer Federal Motor Carrier Safety Administration What of the following is not one of the current issues facing the trucking industry in the future? - correct answer Highway construction with its resultant delays The Federal Highway Trust Fund pays for what percentage of construction cost on the interstate highway system? - correct answer 90%

There are several general service characteristics which favor the trucking industry. Name and discuss at least three. - correct answer Accessibility- can provide service to virtually any location as operating authority of the for-hire carrier no longer places restrictions on the areas served and commodities transported Speed-for shipments going under 800 miles Smaller Carrying Capacity-enables users to use the truckload rate, volume discount with a lower volume. Truckload weights are established at 20,000 to 30, Smoothness of Transport-the suspension system and the pneumatic tries used on their vehicles. smoother than rail and water transport which cargo is less likely to be damaged There are three types of terminals which are used by a trucking firm. Define and discuss each type and indicate if they are unique to any one type of trucking firm. - correct answer Pickup and Delivery Terminals (PUD)-serves a local area and provides direct contact with both shippers and receivers, LTL only Break-Bulk Terminals-performs both consolidation and dispersion services, a point where freight with common destinations will meet to combine goods in one truck, LTL only Relay Terminals-freight is never touched, at this terminal one driver substitutes for another when max hours of driving are reached, mostly LTL Define whether a motor carrier's costs are more fixed or variable. Explain your answer. - correct answer variable-public investment in the highway system is a major factor contributing to low fixed costs, variable cost of fuel, wages, maintenance and highway user fees. most costs are associated with daily costs What is the current status of the rules covering drivers' hours of service? - correct answer maximum of 11 hours after being off duty for 10 consecutive hours Do motor carriers experience economies of scale? - correct answer not for large scale motor carriers

What is the operating ratio, how is computed and what does it measure? - correct answer (operating expense/operating revenue)* measure operating efficiency, an operating ratio of 94 indicates that 94 cents of every operating revenue dollar is consumed by operating expenses, leaving 6 cents of every operating dollar to cover interest and a return to the owners LTL operating ratios usually range from 93- TL could be as low as mid 80s Discuss the current method of funding for highways and include your opinion as the fairness as it relates to the trucking industry. - correct answer highway users-motor carrier vehicle and automobile operators-pay for the construction, maintenance, and policing of highways through highway user taxes It is fair