Transportation Operations LINCS Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Transportation Operations LINCS Exam with interactive quizzes. Study with flashcards, multiple choice questions, and insightful explanations. Ensure your success and gain confidence for your exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What is a characteristic of derived demand in transportation?

It is based on consumer preferences alone
It is dependent on the demand for goods being shipped
It relates only to passenger transport
It is entirely regulated by the government

The correct answer is: It is dependent on the demand for goods being shipped

Derived demand in transportation is fundamentally linked to the demand for the goods being shipped. This concept indicates that the need for transportation services arises from the demand for the products that require movement from one location to another. For instance, if there is a surge in demand for a specific type of product, there will also be an increased need for transportation to ensure that these goods are delivered to the market. This relationship highlights how the demand for transportation is contingent upon the market dynamics of the goods rather than being driven by consumer preferences alone, specific transport types, or government regulations. The focus on the underlying demand for goods makes the characteristic of derived demand crucial in understanding transportation economics.