Question 1

If a foreign firm dumps or sells goods below cost, it can be more easily prosecuted through the:

Accepted Answer

A)  Clayton Act. 
B)  Sherman Antitrust Act. 
C)  Celler-Kefauver Act. 
D)  Omnibus Trade and Competitiveness Act. 
A)  Clayton Act. 
B)  Sherman Antitrust Act. 
C)  Celler-Kefauver Act. 
D)  Omnibus Trade and Competitiveness Act.

Question 2

Justice Department guidelines indicate that they will challenge mergers in highly concentrated industries if the postmerger index changes by more than _____points, with presumption of enhanced market power if the change is more than _____points.

Accepted Answer

A)  50; 100 
B)  50; 2500 
C)  100; 200 
D)  1,000; 2,500 
A)  50; 100 
B)  50; 2500 
C)  100; 200 
D)  1,000; 2,500

Question 3

The capture theory of regulation indicates that a regulatory agency:

Accepted Answer

A)  often serves the regulated firms rather than their customers. 
B)  encourages other regulatory agencies to deregulate their industries. 
C)  seeks to find market solutions that are economically efficient. 
D)  extends its regulatory powers over industries it was not intended to regulate. 
A)  often serves the regulated firms rather than their customers. 
B)  encourages other regulatory agencies to deregulate their industries. 
C)  seeks to find market solutions that are economically efficient. 
D)  extends its regulatory powers over industries it was not intended to regulate.

Question 4

The Justice Department guidelines are that any industry with an HHI Index under 1,000 would be considered to be unconcentrated.

Accepted Answer

A) True 
 B)False

Question 5

The first law designed to curb monopoly power in the United States was the ________ Act.

Accepted Answer

A)  Sherman Antitrust 
B)  Clayton 
C)  Federal Trade Commission 
D)  Robinson-Patman 
A)  Sherman Antitrust 
B)  Clayton 
C)  Federal Trade Commission 
D)  Robinson-Patman

Question 6

The final third of the nineteenth century saw a huge increase in the number of firms in most industries and a dramatic increase in competition.

Accepted Answer

A) True 
 B)False

Question 7

Price-fixing is outlawed by the:

Accepted Answer

A)  Sherman Antitrust Act. 
B)  Clayton Act. 
C)  Federal Trade Commission Act. 
D)  Celler-Kefauver Act. 
A)  Sherman Antitrust Act. 
B)  Clayton Act. 
C)  Federal Trade Commission Act. 
D)  Celler-Kefauver Act.

Question 8

What are the major considerations in the economic arguments against concentration of industry?

Accepted Answer

The major considerations in the economic

Question 9

Economists generally agree that if the ______ of consumer protection ______ the ________, the regulations should be _______.

Accepted Answer

A)  costs; exceed; benefits; continued 
B)  benefits; exceed; costs; discontinued 
C)  costs; are less than; benefits; continued. 
D)  benefits; equal; costs; discontinued 
A)  costs; exceed; benefits; continued 
B)  benefits; exceed; costs; discontinued 
C)  costs; are less than; benefits; continued. 
D)  benefits; equal; costs; discontinued

Question 10

If firms collude to raise prices, they will be in violation of the Sherman Antitrust Act.

Accepted Answer

A) True 
 B)False

Question 11

The rule of reason refers to:

Accepted Answer

A)  unreasonable forms of price discrimination. 
B)  the current need for more reasonable antitrust enforcement. 
C)  the reasonableness of conglomerate mergers as opposed to other types of mergers. 
D)  the idea that monopolies should be judged by their behavior. 
A)  unreasonable forms of price discrimination. 
B)  the current need for more reasonable antitrust enforcement. 
C)  the reasonableness of conglomerate mergers as opposed to other types of mergers. 
D)  the idea that monopolies should be judged by their behavior.

Question 12

If a firm acquires stock and assets of a competitor and the result is a decrease in competition, it may very well be in violation of the:

Accepted Answer

A)  Sherman Antitrust Act. 
B)  FTC Act. 
C)  Robinson-Patman Act. 
D)  Clayton Act. 
A)  Sherman Antitrust Act. 
B)  FTC Act. 
C)  Robinson-Patman Act. 
D)  Clayton Act.

Question 13

One cost of consumer protection laws is that they may have encouraged more reckless behaviors.

Accepted Answer

A) True 
 B)False

Question 14

In the decades after the Civil War, giant corporations began to dominate industries such as:

Accepted Answer

A)  meat packing and oil. 
B)  farming and fishing. 
C)  textiles and farming. 
D)  fishing and textiles. 
A)  meat packing and oil. 
B)  farming and fishing. 
C)  textiles and farming. 
D)  fishing and textiles.

Question 15

An action that violates the law, with no consideration given to the circumstances surrounding the action, is called:

Accepted Answer

A)  immoral. 
B)  illegal per se. 
C)  primitive. 
D)  collusive. 
A)  immoral. 
B)  illegal per se. 
C)  primitive. 
D)  collusive.

Question 16

The public choice theory of regulation rests on the premise that:

Accepted Answer

A)  individuals are evil and will only do the wrong thing. 
B)  individuals will pursue their own self-interest in private, but not public matters. 
C)  people employed by government will pursue their own self-interest. 
D)  public servants can be trusted to serve the public interest. 
A)  individuals are evil and will only do the wrong thing. 
B)  individuals will pursue their own self-interest in private, but not public matters. 
C)  people employed by government will pursue their own self-interest. 
D)  public servants can be trusted to serve the public interest.

Question 17

U.S.antitrust policies of today allow certain joint ventures among horizontally competitive firms.

Accepted Answer

A) True 
 B)False

Question 18

The bigness-is-badness doctrine dominated U.S.antitrust policy from 1945 to the 1970s, but it had many critics.

Accepted Answer

A) True 
 B)False

Question 19

According to the textbook, any effort by government to influence or control the choices of private firms and individuals is called:

Accepted Answer

A)  unpatriotic behavior. 
B)  encroachment. 
C)  libertarianism. 
D)  regulation. 
A)  unpatriotic behavior. 
B)  encroachment. 
C)  libertarianism. 
D)  regulation.

Question 20

Regulation is an effort by government agencies to control the choices of private firms or individuals.

Accepted Answer

A) True 
 B)False

If a foreign firm dumps or sells goods below cost, it can be more easily prosecuted through the:

Justice Department guidelines indicate that they will challenge mergers in highly concentrated industries if the postmerger index changes by more than _points, with presumption of enhanced market power if the change is more than _points.

The capture theory of regulation indicates that a regulatory agency:

The Justice Department guidelines are that any industry with an HHI Index under 1,000 would be considered to be unconcentrated.

The first law designed to curb monopoly power in the United States was the ________ Act.

The final third of the nineteenth century saw a huge increase in the number of firms in most industries and a dramatic increase in competition.

Price-fixing is outlawed by the:

What are the major considerations in the economic arguments against concentration of industry?

Economists generally agree that if the of consumer protection the , the regulations should be ___.

If firms collude to raise prices, they will be in violation of the Sherman Antitrust Act.

The rule of reason refers to:

If a firm acquires stock and assets of a competitor and the result is a decrease in competition, it may very well be in violation of the:

One cost of consumer protection laws is that they may have encouraged more reckless behaviors.

In the decades after the Civil War, giant corporations began to dominate industries such as:

An action that violates the law, with no consideration given to the circumstances surrounding the action, is called:

The public choice theory of regulation rests on the premise that:

U.S.antitrust policies of today allow certain joint ventures among horizontally competitive firms.

The bigness-is-badness doctrine dominated U.S.antitrust policy from 1945 to the 1970s, but it had many critics.

According to the textbook, any effort by government to influence or control the choices of private firms and individuals is called:

Regulation is an effort by government agencies to control the choices of private firms or individuals.

Economics: The Study of Choice

Confronting Scarcity: Choices in Production

Demand and Supply

Applications of Supply and Demand

Elasticity: a Measure of Response

Markets, Maximizers, and Efficiency

The Analysis of Consumer Choice

Production and Cost

Competitive Markets for Goods and Services

Monopoly

The World of Imperfect Competition

Wages and Employment in Perfect Competition

Interest Rates and the Markets for Capital and Natural Resources

Imperfectly Competitive Markets for Factors of Production

Public Finance and Public Choice

International Trade

The Economics of the Environment

Inequality, Poverty, and Discrimination

Filters

Exam 16: Antitrust Policy and Business Regulation

If a foreign firm dumps or sells goods below cost, it can be more easily prosecuted through the:

Justice Department guidelines indicate that they will challenge mergers in highly concentrated industries if the postmerger index changes by more than _____points, with presumption of enhanced market power if the change is more than _____points.

The capture theory of regulation indicates that a regulatory agency:

The Justice Department guidelines are that any industry with an HHI Index under 1,000 would be considered to be unconcentrated.

The first law designed to curb monopoly power in the United States was the ________ Act.

The final third of the nineteenth century saw a huge increase in the number of firms in most industries and a dramatic increase in competition.

Price-fixing is outlawed by the:

What are the major considerations in the economic arguments against concentration of industry?

Economists generally agree that if the ______ of consumer protection ______ the ________, the regulations should be _______.

If firms collude to raise prices, they will be in violation of the Sherman Antitrust Act.

The rule of reason refers to:

If a firm acquires stock and assets of a competitor and the result is a decrease in competition, it may very well be in violation of the:

One cost of consumer protection laws is that they may have encouraged more reckless behaviors.

In the decades after the Civil War, giant corporations began to dominate industries such as:

An action that violates the law, with no consideration given to the circumstances surrounding the action, is called:

The public choice theory of regulation rests on the premise that:

U.S.antitrust policies of today allow certain joint ventures among horizontally competitive firms.

The bigness-is-badness doctrine dominated U.S.antitrust policy from 1945 to the 1970s, but it had many critics.

According to the textbook, any effort by government to influence or control the choices of private firms and individuals is called:

Regulation is an effort by government agencies to control the choices of private firms or individuals.

Economics: The Study of Choice

Confronting Scarcity: Choices in Production

Demand and Supply

Applications of Supply and Demand

Elasticity: a Measure of Response

Markets, Maximizers, and Efficiency

The Analysis of Consumer Choice

Production and Cost

Competitive Markets for Goods and Services

Monopoly

The World of Imperfect Competition

Wages and Employment in Perfect Competition

Interest Rates and the Markets for Capital and Natural Resources

Imperfectly Competitive Markets for Factors of Production

Public Finance and Public Choice

International Trade

The Economics of the Environment

Inequality, Poverty, and Discrimination

Filters

Justice Department guidelines indicate that they will challenge mergers in highly concentrated industries if the postmerger index changes by more than _points, with presumption of enhanced market power if the change is more than _points.

Economists generally agree that if the of consumer protection the , the regulations should be ___.