Transportation Operations LINCS Practice Exam

What are the two major types of utilities created by transportation?

1. Time and economic

2. Hedonic and economic

3. Time and place

4. Economic and utilitarian

The correct answer is: Time and place

Transportation creates two major types of utilities: time and place. The concept of utility in transportation essentially refers to the value and benefits derived from moving goods and people from one location to another. Time utility involves the reduction of time taken to move goods or individuals, making products available as needed and facilitating quicker access to services or opportunities. This is critical in logistics and supply chain management, as timely delivery can enhance customer satisfaction and efficiency. Place utility relates to creating value based on the geographic location of goods and services. By moving items closer to where they are demanded, transportation enhances their worth to consumers and businesses alike. For example, transporting goods to various market locations makes them accessible to consumers, fulfilling their needs effectively. Understanding these two types of utilities is essential for grasping how transportation affects economic activities and individual choices, which plays a significant role in the planning and operation of transportation systems.