Practice question

What was the impact of deregulation on the number of trucking companies from 1980 to 1990?

  1. It decreased
  2. It doubled
  3. It remained stable
  4. It fluctuated

Answer: B — It doubled

The impact of deregulation on the number of trucking companies from 1980 to 1990 was indeed significant, leading to a substantial increase in the number of operators in the industry. Deregulation allowed for more competition by eliminating many of the previous restrictions that controlled entry into the trucking market. As a result, many new companies emerged, attracted by the opportunity to enter a once heavily regulated industry with fewer barriers to entry. This period saw a doubling in the number of trucking companies because existing companies sought to expand their operations, while new entrants were able to establish themselves without the cumbersome regulations that had previously stifled competition. The increase in competition often led to more efficiency and lower prices for consumers, fundamentally changing the landscape of the trucking industry during that decade. The other options do not accurately represent the impact of deregulation during this timeframe. A decrease would suggest a consolidation or lack of interest in the market, while a stable outcome does not reflect the dynamic changes that occurred. Fluctuation implies inconsistency, which also does not capture the overall trend of growth during this era.

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