2024 /2025 | © copyright | This work may not be copied for profit gain | Excel!
AVMG 4200 TEST 1 QUESTIONS AND
CORRECT ANSWERS | LATEST UPDATE
The three fundamental forms of utility under capitalist economic theory are:
✓ -:- Possession, Form, and Time/Space
Goods will move from areas of surplus to areas of shortage as if by a mysterious "Invisible
Hand" as long as three fundamental conditions are met; among these are _____ .
✓ -:- free market conditions are provided
In order for there to be "Free Markets" several preconditions must be met; among the "top
three" for a modern economic system are _____ .
✓ -:- a predictable and stable means of value exchange
Utility or Value in an economic system created by the "physical transformation of materials
from raw to finished product" is called _____ value.
✓ -:- Form
1|P a g e | G r a d e A + | 2 0 2 0 2 5
,2024 /2025 | © copyright | This work may not be copied for profit gain | Excel!
The cost per passenger (or pound) for a flight is literally impossible to calculate in advance
because
✓ -:- the costs are fixed but demand varies
The economic deregulation of the transportation industry began with
✓ -:- rail in 1976
"Managerial" accounting deals primarily with
✓ -:- assessing business alternatives
Under the "Cost Accounting" paradigm, labor is typically characterized as a _____ cost.
✓ -:- variable
Transportation adds value in an economic system by generating
✓ -:- time and Place utility
The _____ cost concept is a core principle of the modern Supply/Value Chain model.
2|P a g e | G r a d e A + | 2 0 2 0 2 5
,2024 /2025 | © copyright | This work may not be copied for profit gain | Excel!
✓ -:- total
The value created by a modern Supply/Value Chain is harvested
✓ -:- only at the retail (final customer) step of the process
A critical outcome of the supply chain is to deliver
✓ -:- the right product to the right place.
"Freight Eligibility" determines and goes along with and determines _____.
✓ -:- modal option selection
The buying of transportation services is typically either done by a _____ or _____.
✓ -:- shipper, forwarder
In the competitive environment for transportation services, _____ refers to the modal
characteristic defined by the convenience and number of dropoff & pickup locations.
✓ -:- accessibility
3|P a g e | G r a d e A + | 2 0 2 0 2 5
, 2024 /2025 | © copyright | This work may not be copied for profit gain | Excel!
The two main negotiation approaches between freight buyers and carriers are the _____
and _____.
✓ -:- adversarial, collaborative
Product types that represent the market for air freight include items that are
✓ -:- valuable relative to weight and volume
In the "Physical perspective" of the aviation industry macro supply/value chain, the system is
made up of
✓ -:- nodes (locations) and arcs (routes)
The "arcs" in the physical model of the aviation industry supply/value chain perspective can
be either _____ or _____.
✓ -:- surface, air
The three types of Air Freight Carriers are
4|P a g e | G r a d e A + | 2 0 2 0 2 5
AVMG 4200 TEST 1 QUESTIONS AND
CORRECT ANSWERS | LATEST UPDATE
The three fundamental forms of utility under capitalist economic theory are:
✓ -:- Possession, Form, and Time/Space
Goods will move from areas of surplus to areas of shortage as if by a mysterious "Invisible
Hand" as long as three fundamental conditions are met; among these are _____ .
✓ -:- free market conditions are provided
In order for there to be "Free Markets" several preconditions must be met; among the "top
three" for a modern economic system are _____ .
✓ -:- a predictable and stable means of value exchange
Utility or Value in an economic system created by the "physical transformation of materials
from raw to finished product" is called _____ value.
✓ -:- Form
1|P a g e | G r a d e A + | 2 0 2 0 2 5
,2024 /2025 | © copyright | This work may not be copied for profit gain | Excel!
The cost per passenger (or pound) for a flight is literally impossible to calculate in advance
because
✓ -:- the costs are fixed but demand varies
The economic deregulation of the transportation industry began with
✓ -:- rail in 1976
"Managerial" accounting deals primarily with
✓ -:- assessing business alternatives
Under the "Cost Accounting" paradigm, labor is typically characterized as a _____ cost.
✓ -:- variable
Transportation adds value in an economic system by generating
✓ -:- time and Place utility
The _____ cost concept is a core principle of the modern Supply/Value Chain model.
2|P a g e | G r a d e A + | 2 0 2 0 2 5
,2024 /2025 | © copyright | This work may not be copied for profit gain | Excel!
✓ -:- total
The value created by a modern Supply/Value Chain is harvested
✓ -:- only at the retail (final customer) step of the process
A critical outcome of the supply chain is to deliver
✓ -:- the right product to the right place.
"Freight Eligibility" determines and goes along with and determines _____.
✓ -:- modal option selection
The buying of transportation services is typically either done by a _____ or _____.
✓ -:- shipper, forwarder
In the competitive environment for transportation services, _____ refers to the modal
characteristic defined by the convenience and number of dropoff & pickup locations.
✓ -:- accessibility
3|P a g e | G r a d e A + | 2 0 2 0 2 5
, 2024 /2025 | © copyright | This work may not be copied for profit gain | Excel!
The two main negotiation approaches between freight buyers and carriers are the _____
and _____.
✓ -:- adversarial, collaborative
Product types that represent the market for air freight include items that are
✓ -:- valuable relative to weight and volume
In the "Physical perspective" of the aviation industry macro supply/value chain, the system is
made up of
✓ -:- nodes (locations) and arcs (routes)
The "arcs" in the physical model of the aviation industry supply/value chain perspective can
be either _____ or _____.
✓ -:- surface, air
The three types of Air Freight Carriers are
4|P a g e | G r a d e A + | 2 0 2 0 2 5
