Quiz Questions

Use the following information of a transportation network and calculate Gamma Index. I. Total number of existing links in the network: 30 II. Total number of existing vertices in the network: 12

1 e/3(v-2)

What is the range for a firm's total weighted score in an External Factor Evaluation Matrix?

1 to 4

______ is NOT part of an external assessment.

Analyzing the financial ratios of your firm.

Consumer surplus measures the economic welfare from the ________'s side.

Buyer

Economies of ______, results from increasing output without expanding the size of the existing network.

Density

Historically, technological innovation in air transportation is directly associated with the scope and intensity of tourism and leisure activities. Which of the following is NOT one of the benefits from transportation innovation?

Diseconomies of Density, Scale

Gravity models are commonly used in measuring the extent of spatial interaction. The basic gravity model includes two key elements: _______.

Distance & Population

The low unemployment rate in the U.S. is an example of a(n) ________ force affecting business.

Economic

________ demand indicates that a small change in price will cause a large change in quantity demanded.

Elastic

What are the Michael Porter's five competitive forces?

Entry, Rivalry, Substitutes, Suppliers, Buyers

Patterns and intensities of ________ determine the viability of networks.

Flows

What are the steps in designing an External Factor Evaluation Matrix?

Identifying key external factors,

A substantial increase in seat capacity can _________ and therefore, increase the demand for air travel.

Increase economies of scale, Reduce unit operating cost, Reduce airfare (I, II & III only)

If the U.S. disposable income rises substantially, then the equilibrium price will ________ and the equilibrium quantity will ________ in the U.S. airline industry.

Increase, Increase

To maximize profits, a single-price monopoly produces the quantity at which ________.

Marginal revenue is equal to marginal cost

Transport ______ are manifested in three ways: ground, air and marine transportation

Modes

__________ shows that a single firm can produce the entire market outputs at lower cost than could several firms

Natural monopoly

Transport _________ determine flows and play a key role in the development of destinations, especially in the context of accessibility and connectivity.

Networks

A ______ is a good for which the demand increases if income increases.

Normal Good

What is NOT one of Michael Porter's five competitive forces?

Political and governmental forces

Which of the following is one of the three main methods that the government uses to reduce air pollution?

Pollution limits, Pollution charges or taxes, Marketable pollution permits (Cap-and-Trade)

Gravity models are commonly used in measuring the extent of spatial interaction and estimate the demand for transportation services in city pair markets. List two key factors that affect transport demand in the basic gravity models.

Population and Distance

Which of the following is one of the factors that change transport demand?

Prices of related goods, Consumers' preferences, Income, Number of buyers

Which of the following is true regarding the market characteristics of oligopoly?

Products are differentiated, Sellers have some influence over price

Which of the following is true regarding the market characteristics of perfect competition?

Products are the same (identical products), Buyers are price takers

Economies of ______, refers to when an increase in output results in a less than proportional increase in costs

Scale

Which of the following is NOT an example of the "market shock"?

Seasonality

Economies of ______, increases output by increasing the size of the network.

Size

A ______ is a good that can be consumed in place of another good.

Substitute

Which of the following is NOT one of the reasons that Dr. Button (1993) supports the re -regulation of airline industry?

Transport can be perceived as a private good

Transport ______ are the actual means of mobility realized within a particular mode.

Types

One of the more common means by which connectivity within a network is measured is graph theory. Points are referred to as ______, and line segments are usually referred to as ______.

Vertices, Edges

β index

e/v

Identifying and evaluating key social, political, economic, technological and competitive trends and events comprise

performing an external assessment

If the airfare is too low, the _________will exceed the __________. Therefore, there is a _________of air tickets and price will continue to _____ until equilibrium price.

quantity demanded; quantity supplied; shortage; increase