AVMG 4200 EXAM 1 QUESTIONS &
ANSWERS(RATED A+)
The three fundamental forms of utility under capitalist economic theory are: -
ANSWER-possession (marketing)
-form (manufacturing)
time/space (transportation)
What is an example of possession value? - ANSWERutility or value in economic
system described as the "unique perception of value (desire) in the hearts and minds
of the individual consumer"
_________________ must be satisfied for the "invisible hand" to move goods from
areas of surplus to areas of shortage holds that the change in total value must be
greater than or equal to the change in total cost
∆V ≥ ∆C - ANSWERValue Proposition
What transportation modes are the MOST RELIABLE? - ANSWERPipeline and truck
What is an example of form value? - ANSWERutility or value in an economic system
created by the "physical transformation of materials from raw to finished product"
What is the "value proposition" of transportation? - ANSWERincreasing the value of
a product (or person) by moving it to a different point in space and time (Adam smith)
only if:
1. the value proposition is satisfied
2. free market conditions exist:
-buyer-seller awareness
-enforceable contracts
-means of value exchange
3. government does not prohibit movement
What is an example of time and place value? - ANSWERUtility or value in an
economic system created by the "movement of goods from areas of surplus to areas
of shortage--> goods are worth more in shortage than in surplus
Possession value is created by the ___ function in an organization -
ANSWERmarketing
"Form Value" is created by the _____ function in an organization. -
ANSWERmanufacturing
time and place value is created by the ___ function in an organization -
ANSWERtransportation
GDP - ANSWERGross domestic product
, Three measure of economic output: - ANSWER1. value proposition
2. markets
governments
What is the invisible hand theory and is it good or bad for economics? - ANSWERA
metaphor for how, in a free market economy, self-interested individuals operate
through a system of mutual independence.
ex. to increase market share, a manufacturer might provide a higher- quality product
at a lower price than its competitor.
This allows the market to reach equilibrium without government or other
interventions forcing it into unnatural patterns
what caused an explosion of international trade at the end of WWII? -
ANSWERgovernments have enacted "laissez faire" economic policies for the import
ion of foreign products/information has become easy, cheap and ubiquitous
What is the traditional model of competition? - ANSWERFirms compete horizontally:
compete with one aspect of the supply chain
What is the supply chain model of competition? - ANSWERFirms compete vertically:
collaborate in order for everyone to be successful. cost is generated by every single
activity
What is a combination carrier? - ANSWERcarries both passengers and cargo
what is used primarily to ship small quantities of high value, low weight goods? -
ANSWERair
who is seeking to purchase transportation services? - ANSWERshipper
who is seeking to provide transportation services? - ANSWERcarrier
the product offered to the transportation is the - ANSWERvalue proposition
Logistics - ANSWERcombines the inbound logistics with outbound logistics of
physical distribution
Supply chain management - ANSWERis the efficient and effective flow of products,
materials, services through various intermediate entities out to the end user
In a modern Supply/Value Chain, - ANSWER-value is created by every part of the
chain
-value is created only by marketing, manufacturing and transportation
the value created by the modern supply/chain is harvested - ANSWERonly at the
retail step of the process/ and the retail customer pays for the cost of the entire
process
ANSWERS(RATED A+)
The three fundamental forms of utility under capitalist economic theory are: -
ANSWER-possession (marketing)
-form (manufacturing)
time/space (transportation)
What is an example of possession value? - ANSWERutility or value in economic
system described as the "unique perception of value (desire) in the hearts and minds
of the individual consumer"
_________________ must be satisfied for the "invisible hand" to move goods from
areas of surplus to areas of shortage holds that the change in total value must be
greater than or equal to the change in total cost
∆V ≥ ∆C - ANSWERValue Proposition
What transportation modes are the MOST RELIABLE? - ANSWERPipeline and truck
What is an example of form value? - ANSWERutility or value in an economic system
created by the "physical transformation of materials from raw to finished product"
What is the "value proposition" of transportation? - ANSWERincreasing the value of
a product (or person) by moving it to a different point in space and time (Adam smith)
only if:
1. the value proposition is satisfied
2. free market conditions exist:
-buyer-seller awareness
-enforceable contracts
-means of value exchange
3. government does not prohibit movement
What is an example of time and place value? - ANSWERUtility or value in an
economic system created by the "movement of goods from areas of surplus to areas
of shortage--> goods are worth more in shortage than in surplus
Possession value is created by the ___ function in an organization -
ANSWERmarketing
"Form Value" is created by the _____ function in an organization. -
ANSWERmanufacturing
time and place value is created by the ___ function in an organization -
ANSWERtransportation
GDP - ANSWERGross domestic product
, Three measure of economic output: - ANSWER1. value proposition
2. markets
governments
What is the invisible hand theory and is it good or bad for economics? - ANSWERA
metaphor for how, in a free market economy, self-interested individuals operate
through a system of mutual independence.
ex. to increase market share, a manufacturer might provide a higher- quality product
at a lower price than its competitor.
This allows the market to reach equilibrium without government or other
interventions forcing it into unnatural patterns
what caused an explosion of international trade at the end of WWII? -
ANSWERgovernments have enacted "laissez faire" economic policies for the import
ion of foreign products/information has become easy, cheap and ubiquitous
What is the traditional model of competition? - ANSWERFirms compete horizontally:
compete with one aspect of the supply chain
What is the supply chain model of competition? - ANSWERFirms compete vertically:
collaborate in order for everyone to be successful. cost is generated by every single
activity
What is a combination carrier? - ANSWERcarries both passengers and cargo
what is used primarily to ship small quantities of high value, low weight goods? -
ANSWERair
who is seeking to purchase transportation services? - ANSWERshipper
who is seeking to provide transportation services? - ANSWERcarrier
the product offered to the transportation is the - ANSWERvalue proposition
Logistics - ANSWERcombines the inbound logistics with outbound logistics of
physical distribution
Supply chain management - ANSWERis the efficient and effective flow of products,
materials, services through various intermediate entities out to the end user
In a modern Supply/Value Chain, - ANSWER-value is created by every part of the
chain
-value is created only by marketing, manufacturing and transportation
the value created by the modern supply/chain is harvested - ANSWERonly at the
retail step of the process/ and the retail customer pays for the cost of the entire
process
