Because of the High Cost of Fuel, Railroads Such as Union

question 130

Multiple Choice

Because of the high cost of fuel, railroads such as Union Pacific Corp and CSX Corp have increased the price they charge to haul freight. This change means that

• A)the supply curve for hauling freight has shifted rightward.
• B)the supply curve for hauling freight has shifted leftward.
• C)the demand curve for hauling freight has shifted rightward.
• D)the demand curve for hauling freight has shifted leftward.
• E)neither the supply curve nor the demand curve for hauling freight has shifted; the only change is that the price is higher.

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Definitions:

Personnel Expenses

Costs associated with employing staff, including wages, benefits, and taxes.

Client-visits

Meetings or engagements with clients outside the company's premises for business discussions or services.

Activity Variance

The variance between the projected budget for a task and the actual expenses incurred.

Budgeting

The process of creating a plan to spend your money by estimating the revenue and expenses for a future period, used as a financial guide.