A) a public activity seeking increased trade and lower cost of living
B) best done by the private sector as they recognize return on investment
C) accomplished with little regard to financial return
D) not concerned with congestion
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The domestic air system receives the benefits of several government programs.Foremost is the Federal Aviation Administration's (FAA)air traffic control system.This system provides navigation and safety for every aircraft in flight within the United States.The system assesses no direct fee to the airlines for its use and captures its operating expenses from airlines and passengers through user charges.
Another direct airline benefit is the subsidy program.These subsidies generally apply to short and medium non-jet flights to cities that are unable to support high traffic volumes.The subsidy has been a significant support mechanism for regional airlines.In recent years,the growth of commuter airlines has enabled regional airlines to discontinue service to small cities.The Air Deregulation Act of 1978 accelerated this trend,which resulted in a lessened need for regional airline subsidies.
The U.S.Postal Service also provides substantial support to airlines.The prime source of income for airlines during their early years came from this subsidy program.In recent years,mail income has not been as significant,but this subsidy is a major revenue source for the industry.
State and local agencies help promote the airline industry through air terminal development and construction.Terminals represent substantial capital investments and would be difficult for the industry to finance and construct.State and local agencies are able to raise the necessary construction funds at reasonable municipal bond interest rates,often backed by the taxing power of the community.The airlines then rent terminal and hangar facilities and pay landing fees for each flight.
Many aircraft safety matters are handled by the federal government.The FAA provides aircraft construction and safety rules as well as pilot certification.In another capacity,the National Transportation Safety Board (NTSB)investigates accidents so that others might be avoided or reduced through aircraft specifications or flight procedures.
Another indirect form of promotion to the airline industry comes from the military.Defense contracts for military aircraft development often provide direct benefits to commercial aviation in the form of mechanical or navigational aircraft improvements.Without military-related research and development activity,advancements in this area would take place at a slower place and at a higher cost to the private sector.
A last form of airline promotion,which is not found in the U.S.system,is direct government ownership,operation,or subsidy of air service.This is common with foreign airlines that serve the United States.In these instances,African,Asian,Latin American,and many European airlines are subsidized so the countries can operate their airlines for purposes of national defense,have some degree of control over traffic to and from their nations,and gain balance of payment benefits and hard currencies through ticket revenues.
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User charges are present in the highway ...View Answer
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A) relieve the railroads of the burden of non-profitable passenger business
B) allow federal planners to create a balanced system without the profit motive of the private sector
C) Be the first step towards nationalization of the modes of transportation
D) relieve the pressure of automobile traffic on the highways by providing an alternate mode of transport.
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A
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A) interstate commerce
B) interstate commerce if it terminates in that state
C) certain safety issues that do not create an undue burden on interstate commerce
D) intrastate commerce if it originates and terminates in that state
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One facet of national policy development that is often overlooked in the study of transportation is the role of industry associations in shaping national,state,and local promotion,regulation,and policy.These associations exist in most industries and their focus is to lobby Congress and other influential groups in the government to pass laws that will help their members.
These associations are nonprofit entities that derive their powers and resources from member firms.They act on the charges given to them by their members.In transportation,the railroads in the Association of American railroads (AAR)and the motor carriers in the American Trucking Associations (ATA)often meet to resolve matters of equipment uniformity and loss and damage prevention.On the policy side,these associations develop legislative and administrative ruling concepts that favor the collective membership,or they serve as a united front against proposals that are perceived to be harmful to the group.
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Railroad Regulations
·Rail economic regu...View Answer
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·Rail economic regu...
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After the September 11,2001 terrorist at...View Answer
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A) Statutory law
B) judicial memory
C) common law
D) common market
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A) The federal government controls all aspects of transportation
B) The federal government has removed most economic control but continues to oversee aspects of transportation safety
C) The government still economically regulates portions of the motor carrier industry
D) The airline industry is free of all regulation but the railroads are still closely regulated
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System that meets the transportation nee...View Answer
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A) imposition of federal safety regulations relieving the carrier of this task
B) subsidies to operate abandoned rail lines the states and others continue to operate
C) the government operated research facility at Pueblo, Colorado
D) the new hours of service for truck drivers which reduced their productivity
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Safety regulations have been established...View Answer
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A) the oversight provided by the Federal Motor Carrier Safety Administration
B) the highway trust fund
C) research conducted by the National Highway Traffic Safety Administration
D) the fact that most highway projects are done with government funds.
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Common law relies upon judicia...View Answer
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A) Coast Guard
B) Department of Homeland Security
C) The Special Forces
D) Federal Bureau of Investigation
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A) have received greater attention
B) have also been deregulated
C) Have been delegated to the states funded with block grants
D) Were turned over to the Department of Homeland Security
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In addition to the Congress and the Pres...View Answer
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A) The Sherman anti-trust act of 1890
B) The Clayton Act of 1914
C) The Reed-Bulwinkle Act of 1948
D) The Robinson-Patman Act of 1936
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Many departments within the executive br...View Answer
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