1
AVMG 4200 - Exam 1 Questions with Answers (100%
Correct Answers)
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 ______. Answer: - The "Value Proposition" is
met (change in total value is greater than change in total cost)
- Government does not prohibit or impede movement through
regulation or taxes.
Utility or Value in an economic system created by the "physical
transformation of materials from raw to finished product" is called
______ value. Answer: Form
The explosion in international trade at the end of World War II that
continues to this day is a direct result of three main factors; among
them are ______. Answer: - Governments have enacted "laissez faire"
economic policies for importation of foreign products.
- Transportation over great distances has become easy, cheap, and
ubiquitous.
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,2
"Yield (or Revenue) Management" pricing strategy attempts to sell
each ticket or waybill ______. Answer: For the maximum price
possible.
Federal transportation regulations fall under two primary domains or
categories: ______ and ______ . Answer: - Safety
- Economic
The focus on "Fixed" vs. "Variable" costs that uses time as the basis of
categorization is the ______ approach. Answer: Cost Accounting
The cost per passenger (or pound) for a flight is literally impossible to
calculate in advance because ______. Answer: The costs are fixed but
demand varies.
A modern Supply/Value "Chain" is actually a network of ______
connected by ______ . Answer: Fixed nodes; transportation arcs
In a modern Supply/Value Chain, ______. Answer: - Value is created
only by Marketing, Manufacturing, and Transportation.
- Cost is generated by every single activity.
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, 3
The "Value Proposition of Transportation" is founded on the principle
of ______. Answer: Moving a product to a different context can
increase its value.
Under the modern Supply/Value Chain concept, the ______ pays for all
the costs of the entire process. Answer: Retail Consumer
Air Freight Forwarders are classified as ______. Answer: Middlemen
______ is used primarily for the long-distance carriage of low-value
goods. Answer: Rail
"Combination Carriers" in air freight carry both ______ and ______.
Answer: - Passengers
- Cargo
The "first filter" the transportation services buyer must apply to a
shipment is known as ______. Answer: Freight Eligibility
Product types that represent the market for air freight include items
that are ______. Answer: - Sensitive to environmental extremes
- Valuable relative to weight and volume.
© 2025 All rights reserved
AVMG 4200 - Exam 1 Questions with Answers (100%
Correct Answers)
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 ______. Answer: - The "Value Proposition" is
met (change in total value is greater than change in total cost)
- Government does not prohibit or impede movement through
regulation or taxes.
Utility or Value in an economic system created by the "physical
transformation of materials from raw to finished product" is called
______ value. Answer: Form
The explosion in international trade at the end of World War II that
continues to this day is a direct result of three main factors; among
them are ______. Answer: - Governments have enacted "laissez faire"
economic policies for importation of foreign products.
- Transportation over great distances has become easy, cheap, and
ubiquitous.
© 2025 All rights reserved
,2
"Yield (or Revenue) Management" pricing strategy attempts to sell
each ticket or waybill ______. Answer: For the maximum price
possible.
Federal transportation regulations fall under two primary domains or
categories: ______ and ______ . Answer: - Safety
- Economic
The focus on "Fixed" vs. "Variable" costs that uses time as the basis of
categorization is the ______ approach. Answer: Cost Accounting
The cost per passenger (or pound) for a flight is literally impossible to
calculate in advance because ______. Answer: The costs are fixed but
demand varies.
A modern Supply/Value "Chain" is actually a network of ______
connected by ______ . Answer: Fixed nodes; transportation arcs
In a modern Supply/Value Chain, ______. Answer: - Value is created
only by Marketing, Manufacturing, and Transportation.
- Cost is generated by every single activity.
© 2025 All rights reserved
, 3
The "Value Proposition of Transportation" is founded on the principle
of ______. Answer: Moving a product to a different context can
increase its value.
Under the modern Supply/Value Chain concept, the ______ pays for all
the costs of the entire process. Answer: Retail Consumer
Air Freight Forwarders are classified as ______. Answer: Middlemen
______ is used primarily for the long-distance carriage of low-value
goods. Answer: Rail
"Combination Carriers" in air freight carry both ______ and ______.
Answer: - Passengers
- Cargo
The "first filter" the transportation services buyer must apply to a
shipment is known as ______. Answer: Freight Eligibility
Product types that represent the market for air freight include items
that are ______. Answer: - Sensitive to environmental extremes
- Valuable relative to weight and volume.
© 2025 All rights reserved
