Motor Carriers: Multiple Choice Questions and Answers, Exams of Biology

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Chapter 5: Motor

Carriers with 100%

correct answers

What is one of the primary reasons for the growth of trucking after World War II? a. Trucks became larger and faster b. Shippers liked the door to door service which trucks could provide c. The Interstate Highway System was constructed which allowed trucks to give faster service over longer distances. d. The railroads gave up on truck type freight and stopped seeking it. - answer c. The Interstate Highway System was constructed which allowed trucks to give faster service over longer distances. What is the primary division between motor carriers? a. Local and long haul b. LTL and Truckload c. Intrastate and interstate

d. For hire and private - answer d. For hire and private What is a Private Carrier? a. a trucking firm whose stock is not listed on any of the stock exchanges b. a trucking firm whose name does not appear on the equipment c. a trucking operation that only hauls freight for the firm which owns it d. a trucking firm that is not registered with the FMCSA - answer c. a trucking operation that only hauls freight for the firm which owns it What does most of the trucking industry consist of? a. carriers operating 6 or fewer trucks b. private trucking c. LTL carriers

d. specialized carriers - answer a. carriers operating 6 or fewer trucks There is a relatively small amount of capital required to enter: a. the private carriage business b. the truckload industry c. The pickup and delivery sector d. The line haul sector - answer b. the truckload industry What do motor carriers haul primarily? a. paper and allied products b. Grain c. coal and ore

d. various manufactured commodity categories - answer d. various manufactured commodity categories What is the status of competition within the motor carrier industry? a. Only carriers of the same type compete against each other such LTL versus LTL or TL versus TL carriers. b. For hire carriers only compete against private carriers c. The industry is highly competitive with competition between all carriers as well as with firms such as United Parcel Service and FedEx d. Truckload carriers only compete with contract carriers - answer c. 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? a. Trucks are built to fit on existing highways b. Trucks have a speed advantage for shipments less than 800 miles

c. Truck rates are cheaper than rail or air d. Trucks are easier to load than rail cars - answer b. Trucks have a speed advantage for shipments less than 800 miles What do the users of truck service benefit from? a. lower inventory levels due to smaller shipments that other modes b. trailers come in a variety of configurations which fit to most types of freight c. the fact that drivers will load and unload shipments d. They are the largest of the five modes - answer a. 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: a. what commodities to haul b. where to position terminal network

c. line haul versus PUD d. what color to paint the trucks - answer b. where to position terminal network The decision as to terminal location: a. is relatively more difficult for trucking than other modes b. is concerned with whether it is to be a line haul or PUD facility c. is based on whether it is to serve a truckload or LTL carrier d. is comparatively simple when contrasted with other management decisions - answer b. is concerned with whether it is to be a line haul or PUD facility Which agency within the Department of Transportation governs specifications of trucks such as number of lights, tires and other operating parts? a. Surface Transportation Board

b. National Highway Traffic Safety Board c. Federal Highway Administration d. Federal Motor Carrier Safety Administration - answer d. Federal Motor Carrier Safety Administration There are several types of truck terminals. Which one is not used by LTL carriers? a. fuel terminals b. PUD terminals c. Break bulk terminals d. Relay terminals - answer a. fuel terminals The trucking industry is characterized as having: a. small investment requirements

b. easy sources of financing c. high variable and low fixed costs d. costly government requirements - answer c. high variable and low fixed costs What is the largest single expense item for trucking firms? a. Fuel and taxes b. Equipment purchases and maintenance c. Labor d. Insurance and management salaries - answer a. Fuel and taxes "There are _____ economies of scale in the trucking industry." a. Significant

b. no major c. management driven opportunities for d. some government suggested - answer b. no major The requirements for a truck driver's license are defined by: a. Federal Motor Carrier Safety Administration b. National Highway Traffic Safety Board c. Federal Highway Administration d. The driver's home state - answer a. Federal Motor Carrier Safety Administration Where does funding for highways come from? a. income taxes

b. highway user taxes c. state income taxes d. block grants from the federal government - answer b. highway user taxes All carriers receive a safety fitness rating. Who makes the inspection and determines the rating? a. Surface Transportation Board b. National Highway Traffic Safety Board c. Federal Highway Administration d. Federal Motor Carrier Safety Administration - answer d. Federal Motor Carrier Safety Administration What of the following is not one of the current issues facing the trucking industry in the future?

a. Safety b. Highway construction with its resultant delays c. Technology d. Financial Stability - answer b. Highway construction with its resultant delays The Federal Highway Trust Fund pays for what percentage of construction cost on the interstate highway system? a. 25% b. 100% c. 90% d. None - answer c. 90%

. Looking at your profit and loss statement you note that you have operating expenses of $10M and operating revenue of $14M, what is your operating ratio? a.

b.

c.

d. Not enough information to tell - answer c.

What type of trailer can be coupled in twos and threes? a. 53 foot b. 48 foot c. 28 foot d.

no trailer can be hooked in a series of three - answer c. 28 foot What mode or segment of a mode generates the most severe competition for the for hire carriers? - answer The private carrier. This is because it is a relatively low capital investment to enter and freedom to control price. There are several service advantages to motor carrier. Name any three. - answer -Service can be provided virtually anywhere -For shipment under 800 miles -- -The smaller carrying capacity enables the shipper to use a volume discount with a smaller volume. There are at least three types of terminals. Name two. - answer -PUD: Key facility for LTL hub and spoke system. -Break-Bulk: performs consolidation and dispersion

37. Discuss the current method of funding for highways and include your opinion as the fairness as it relates to the trucking industry - answer The user taxes are paid to the government who puts it in the Federal Highway Trust Fund. The trust fund pays 90% of construction. I think it is fair that they pay for this considering it is how they make money.