AVMT 211 Chapter 1 & 2

Question 1

The four stages of airline industry development (in order) are:

• Regulation, re-regulation, deregulation, and re-regulation
• Regulation, liberalization, deregulation, and re-regulation
• Regulation, deregulation, re-regulation, and liberalization
• Regulation, deregulation, re-regulation, and deregulation

Answer 1

Regulation, liberalization, deregulation, and re-regulation

Question 2

The aerospace industry has been relatively unsteady over the past several decades and has experienced many changes due to:

• the fluctuating value of the U.S. dollar
• economic conditions
• national policy
• answers a. and b. only
• answers b. and c. only

Answer 2

answers b. and c. only

Question 3

Prior to 1950 the aviation industry was relatively unsophisticated, but the industry began transforming in the early 1950’s with the production of:

• jet-powered supersonic military airplanes.
• multi-engine biplanes.
• double-decker jumbo jets.
• composite propeller systems.

Answer 3

jet-powered supersonic military airplanes.

Question 4

Changes in aerospace product sales are driven by the dynamics of the industry’s:

• manufacturing workforce.
• upper-level management.
• customer base.

Answer 4

customer base.

Question 5

The importance and value content of ___________ components in the aerospace market have grown significantly in recent years.

• metal
• cable & pulley
• electronic
• rubber

Answer 5

electronic

Question 6

Despite growing percentages of nongovernment and non-aerospace business, industry activity is still dominated by:

• government contracts with the DOD.
• government contracts with the National Aeronautics and Space Administration (NASA).
• both a. and b.
• none of the above.

Answer 6

both a. and b.

Question 7

In the United Stated the principal civil aviation product is airline transport, and sales for this depend on the financial health of the world’s airlines.

• True
• False

Answer 7

True

Question 8

Since deregulation in the late _______, the trend has been toward less and less differentiation within the airline industry.

• 1950s
• 1960s
• 1970s
• 1980s

Answer 8

1970s

Question 9

A company’s ability to maintain its position as a global aerospace manufacturer depends fundamentally on its:

• ability to build the biggest and most technically advanced aircraft.
• capitalizing on new market opportunities.
• ability to outsource.
• produce good television commercials.

Answer 9

capitalizing on new market opportunities.

Question 10

International collaboration is not necessary for an aerospace manufacturer to remain competitive in the industry.

• True
• False

Answer 10

False

Question 11

Inflation tends to ________ economic growth which can have a tremendous impact on the air transport industry.

• promote
• inhibit
• accelerate
• stabilize

Answer 11

inhibit

Question 12

Inflation causes interest rates to _______ which inhibits economic growth and can put a damper on air traffic.

• fall
• rise
• stablize

Answer 12

rise

Question 13

Which is not a factor affecting commercial transport sales:

• global weather patterns
• economic growth
• inflation
• fleet capacity

Answer 13

global weather patterns

Question 14

The air transportation industry by definition includes:

• all military flying performed by the U.S. military.
• all civil flying performed by certificated air carriers.
• all civil flying performed by general aviation.
• answers a. and b. only.
• answers b. and c. only.

Answer 14

answers b. and c. only.

Question 15

An “air carrier” is defined in short as any citizen (individual or corporation) who engages in:

• air transportation.
• the carriage of cargo.
• the carriage of passengers.
• none of the above.

Answer 15

air transportation.

Question 16

Over the past 60 years the air transportation industry has fluctuated with the economy, but has not itself had a measurable impact on the economy.

• True
• False

Answer 16

False

Question 17

To visualize a world without air transportation, consider an 800-mile trip from New York to Chicago. Today you can find a flight that will accomplish this in a couple of hours, when in 1940 it took approximately _______ hours each way by rail.

• 17
• 10
• 12
• 22

Answer 17

17

Question 18

The general aviation segment of the aerospace industry primarily manufactures:

• heavy aircraft and components.
• light aircraft and components.
• military aircraft for national defense.

Answer 18

light aircraft and components.