It Is Usually Most Economical to Ship Bulky Nonperishable Items

question 112

Multiple Choice

It is usually most economical to ship bulky nonperishable items, such as coal and iron ore, by

• A) water.
• B) pipeline.
• C) truck.
• D) air.
• E) None of these is a good answer, since the cost of shipping a product usually does not vary from one mode to another.

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Definitions:

Market Imbalances

Situations where the quantity of a good or service supplied does not equal the quantity demanded, leading to surplus or shortage.

Drug Trade

The illegal production, distribution, and sale of drugs that are subject to drug prohibition laws.

Equilibrium Price

The market price at which the supply of an item equals the demand for it, leading to a stable market condition.

Black Markets

A market that operates outside the legal system in which either illegal goods are sold or legal goods are sold at illegal prices or terms.