Question 1

The Supreme Court moved quickly to the notion that clear-cut standards could be used to define violations of the Sherman Antitrust Act.

Accepted Answer

A) True 
 B)False

Question 2

Regulatory efforts aimed at protecting consumers have not:

Accepted Answer

A)  benefited them. 
B)  increased costs of some goods and services. 
C)  caused prices of some goods and services to increase. 
D)  been universally denounced by economists, even if they stress the costs involved. 
A)  benefited them. 
B)  increased costs of some goods and services. 
C)  caused prices of some goods and services to increase. 
D)  been universally denounced by economists, even if they stress the costs involved.

Question 3

The capture theory of regulation holds that government regulations often end up serving the interests of regulated firms.

Accepted Answer

A) True 
 B)False

Question 4

The attempt of regulatory agencies to find market solutions that are economically efficient is explained by:

Accepted Answer

A)  theories of public finance. 
B)  imperfectly competitive models. 
C)  the public choice theory of regulation. 
D)  the public interest theory of regulation. 
A)  theories of public finance. 
B)  imperfectly competitive models. 
C)  the public choice theory of regulation. 
D)  the public interest theory of regulation.

Question 5

Market power in the United States was often gained in the latter part of the nineteenth century by:

Accepted Answer

A)  forming trusts. 
B)  the growth of competition. 
C)  international arrangements with Russian and Japanese firms. 
D)  opening up more industries to international trade. 
A)  forming trusts. 
B)  the growth of competition. 
C)  international arrangements with Russian and Japanese firms. 
D)  opening up more industries to international trade.

Question 6

When two firms agree to collude to establish a price and eliminate price competition, it is called:

Accepted Answer

A)  oligopoly. 
B)  market sharing. 
C)  output-shading. 
D)  price-fixing. 
A)  oligopoly. 
B)  market sharing. 
C)  output-shading. 
D)  price-fixing.

Question 7

The costs of regulation are always greater than the benefits.

Accepted Answer

A) True 
 B)False

Question 8

Regulation of markets may involve the cost of fewer products being available.

Accepted Answer

A) True 
 B)False

Question 9

Regulation of markets and enforcement of consumer safety laws may involve the cost of:

Accepted Answer

A)  economic instability. 
B)  fewer products being available. 
C)  the use of fewer resources in government. 
D)  all of the above. 
A)  economic instability. 
B)  fewer products being available. 
C)  the use of fewer resources in government. 
D)  all of the above.

Question 10

ICPAC (International Competition Policy Advisory Committee) is to provide advice and information on:

Accepted Answer

A)  transnational terrorism. 
B)  international anticompetitive issues. 
C)  intrastate mergers in the United States. 
D)  the Winter Olympics. 
A)  transnational terrorism. 
B)  international anticompetitive issues. 
C)  intrastate mergers in the United States. 
D)  the Winter Olympics.

Question 11

Public choice theory suggests:

Accepted Answer

A)  regulatory agencies seek to reduce their bureaucratic structure in order to reduce the need for high taxes. 
B)  bureaucrats do not respond favorably to lobbyists and special interest groups. 
C)  that firms may exploit regulation in order to limit competition. 
D)  government employees seek to serve the public interest, not their private interests. 
A)  regulatory agencies seek to reduce their bureaucratic structure in order to reduce the need for high taxes. 
B)  bureaucrats do not respond favorably to lobbyists and special interest groups. 
C)  that firms may exploit regulation in order to limit competition. 
D)  government employees seek to serve the public interest, not their private interests.

Question 12

An example of a vertical merger would be the acquisition of a tire company by a car company.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following would be included in an economic approach to health and safety regulations?

Accepted Answer

A)  behavioral response to technological regulations 
B)  performance-oriented standards as opposed to command-and-control regulations 
C)  the opportunity cost of regulations 
D)  all of the above 
A)  behavioral response to technological regulations 
B)  performance-oriented standards as opposed to command-and-control regulations 
C)  the opportunity cost of regulations 
D)  all of the above

Question 14

A firm that does not change the price at which it sells its output is said to be engaged in price fixing.

Accepted Answer

A) True 
 B)False

Question 15

ICPAC (International Competition Policy Advisory Committee) was created in 1997 in recognition of the _______ in international commerce and the _______ in international anti-competitive activity.

Accepted Answer

A)  decrease; decrease 
B)  decrease; increase 
C)  increase; decrease 
D)  increase; increase 
A)  decrease; decrease 
B)  decrease; increase 
C)  increase; decrease 
D)  increase; increase

Question 16

The rule of reason was outlawed by the Clayton Act.

Accepted Answer

A) True 
 B)False

Question 17

Projects that are cooperatively carried out by two or more firms are called:

Accepted Answer

A)  collusive endeavors. 
B)  partnerships. 
C)  tied contracts. 
D)  joint ventures. 
A)  collusive endeavors. 
B)  partnerships. 
C)  tied contracts. 
D)  joint ventures.

Question 18

In 1914, Congress passed the Federal Trade Commission Act, which gave the FTC the power to prosecute firms using illegal business acts.

Accepted Answer

A) True 
 B)False

Question 19

One cost of consumer protection laws is preventing consumers from buying ineffective drugs.

Accepted Answer

A) True 
 B)False

Question 20

An act that sought to prohibit firms from conspiring to restrain trade was the:

Accepted Answer

A)  Federal Trade Commission Act. 
B)  Federal Reserve Act. 
C)  Grant Act. 
D)  Sherman Antitrust Act. 
A)  Federal Trade Commission Act. 
B)  Federal Reserve Act. 
C)  Grant Act. 
D)  Sherman Antitrust Act.

The Supreme Court moved quickly to the notion that clear-cut standards could be used to define violations of the Sherman Antitrust Act.

Regulatory efforts aimed at protecting consumers have not:

The capture theory of regulation holds that government regulations often end up serving the interests of regulated firms.

The attempt of regulatory agencies to find market solutions that are economically efficient is explained by:

Market power in the United States was often gained in the latter part of the nineteenth century by:

When two firms agree to collude to establish a price and eliminate price competition, it is called:

The costs of regulation are always greater than the benefits.

Regulation of markets may involve the cost of fewer products being available.

Regulation of markets and enforcement of consumer safety laws may involve the cost of:

ICPAC (International Competition Policy Advisory Committee) is to provide advice and information on:

Public choice theory suggests:

An example of a vertical merger would be the acquisition of a tire company by a car company.

Which of the following would be included in an economic approach to health and safety regulations?

A firm that does not change the price at which it sells its output is said to be engaged in price fixing.

ICPAC (International Competition Policy Advisory Committee) was created in 1997 in recognition of the _ in international commerce and the _ in international anti-competitive activity.

The rule of reason was outlawed by the Clayton Act.

Projects that are cooperatively carried out by two or more firms are called:

In 1914, Congress passed the Federal Trade Commission Act, which gave the FTC the power to prosecute firms using illegal business acts.

One cost of consumer protection laws is preventing consumers from buying ineffective drugs.

An act that sought to prohibit firms from conspiring to restrain trade was the:

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

The Supreme Court moved quickly to the notion that clear-cut standards could be used to define violations of the Sherman Antitrust Act.

Regulatory efforts aimed at protecting consumers have not:

The capture theory of regulation holds that government regulations often end up serving the interests of regulated firms.

The attempt of regulatory agencies to find market solutions that are economically efficient is explained by:

Market power in the United States was often gained in the latter part of the nineteenth century by:

When two firms agree to collude to establish a price and eliminate price competition, it is called:

The costs of regulation are always greater than the benefits.

Regulation of markets may involve the cost of fewer products being available.

Regulation of markets and enforcement of consumer safety laws may involve the cost of:

ICPAC (International Competition Policy Advisory Committee) is to provide advice and information on:

Public choice theory suggests:

An example of a vertical merger would be the acquisition of a tire company by a car company.

Which of the following would be included in an economic approach to health and safety regulations?

A firm that does not change the price at which it sells its output is said to be engaged in price fixing.

ICPAC (International Competition Policy Advisory Committee) was created in 1997 in recognition of the _______ in international commerce and the _______ in international anti-competitive activity.

The rule of reason was outlawed by the Clayton Act.

Projects that are cooperatively carried out by two or more firms are called:

In 1914, Congress passed the Federal Trade Commission Act, which gave the FTC the power to prosecute firms using illegal business acts.

One cost of consumer protection laws is preventing consumers from buying ineffective drugs.

An act that sought to prohibit firms from conspiring to restrain trade was the:

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

ICPAC (International Competition Policy Advisory Committee) was created in 1997 in recognition of the _ in international commerce and the _ in international anti-competitive activity.