True or False. And correct it if it is not true.

1. The transportation industry expands and contracts with the cycle of the general economy.

2. The derived demand is not dependent upon the nature of the market for the final output.

3. Comfort and security are attributes of travel whose demand generally rises with traveling distance.

4. The price of regular cabin seats is more inelastic than that of the business class seats.

5. Opportunity cost is defined as the value of the next best alternative foregone to undertake the present activity chosen.

6. Transportation is a service that can be hoared or stockpiled.

7. The derived demand for transport is more price elastic for bulk goods such as coal, grain, and iron ore.

8. Passenger travel for sight-seeing is a derived demand.

9. Goods with a low value to weight ratios are insensitive to transport cost.

10. Public goods are non-rival and non-excludable.

11. Transportation adds value to what is being transported because it is worth more in one place than in another.

12. Any good with a positve income elasticity of demand is called an inferior good.

13. As a factor of production, the demand for transportation is generated by the trade within markets for goods.

14. Drastic cuts in urban transit fares will not be enough to induce some people to give up their cars and travel by bus.

15. If the demand is elastic and prices go down, then total sales or revenues go down because the percentage increase.

16. A journeys total cost is the sum of the money cost and the time cost.

17. The income elasticity of demand for urban bus travel is positive.

18. In terms of transport costs, the shipment of manufactured goods has a relatively price-elastic demand for transportation services compared with bulk goods.

19. Most transportation services are purchased on the basis of a primary demand.

20. The transportation industry can exhibit a procyclical economic nature

21. The only point on the demand curve that revenues are constant is at the point of unit-elasticity.

22. Most transportation services are provided by a combination of public and private investment.

23. The derived demand aspect of freight transport means that any premium paid for speed or reliability of transport may be passed on to consumers in the form of higher output prices.

24. A higher freight rate may prevent bulk goods from being transported over large distances and limit trade to localized markets.

25. Generally speaking, freight transportation is kind of balanced trade, while passenger transportation imbalanced trade.

26. The demand for transportation is the first to be ill-affected by an economy-wide recession, and the first to react positively to a general economic expansion.

27. As income rises, passengers are willing to trade off monetary costs for improvements in other attributes of travel and their opportunity costs.

28. During peak travel periods, rapid transit systems are likely to perform better than the private automobile or city buses.

29. All freight transportation is serving the derived demand created by final(primary) demand for the trade of final goods and services.

30. Transportation faces the elasticity its own derived demand, and is not affected by the elasticity of the final demand that transport serves.

31. So long as the profits earned using the current transport mode exceed those of the alternatives, the present decision is rational for the shipper.

32. If the factors cost had been a larger proportion of total cost, then the fall in the factors price would have triggered a larger decrease in the quantity of the factor demanded.

33. The opportunity cost of passenger travel is the value of the time foregone by travelling.

34. Higher income consumers are likely to choose more inexpensive means of transport.

35. The price elasticity of demand expresses an important relationship between changes in prices and total revenues.

36. For a passenger, the attractiveness of the premium necessary for shorter travel time varies with the income of the traveler and their corresponding opportunity cost.

37. The longer government regulations and subsidies are sustained, the more sensitive the transportation service becomes to the evolving consumer demand.

38. Expectations about the future can not affect the demand for transportation.

39. In public transportation, the quality and quantity of services provided match the real demand well.

40. The opportunity cost of working is the value of ones favorite leisure activity foregone by working.

41. A leisurely bicycle rides through the park and riding a bicycle to work are both primary demand for transport.

42. Governments try to influence demand through subsidies that lower the price, by investments in transportation infrastructure and through regulatory controls.

43. In big cities, urban transit services can generate enough revenue from the passenger fare box to pay for their costs.

44. The relative prices of different modes of transport are not important determinants of consumer demand for a particular mode.

45. Income elasticity of demand measures the sensitivity of the quantity demanded of a good or service with respect to a change in the level of income of the consumer

46. Passenger transport always occurs under a derived demand while freight travle can be a primary demand or a derived one.

47. Governments have a profound influence on the demand for passenger transportation by monopoly control and by using transportation as an instrument of social policy.

48. Most forms of leisure or recreational travel are serving the derived demand for transport.

49. In a primary demand for transport, the value is judged by the satisfaction or pleasure gained from the journey.

50. Even for high value-added goods, transportation costs for imports still offer a degree of protection to local manufacturers.