Question 1

An action whose illegality depends on the circumstances surrounding the action is said to be subject to:

Accepted Answer

A)  illegality per se. 
B)  the unreasonable rule. 
C)  the rule of reason. 
D)  the principle of excessive restraint. 
A)  illegality per se. 
B)  the unreasonable rule. 
C)  the rule of reason. 
D)  the principle of excessive restraint.

Question 2

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

Accepted Answer

A)  theory of imperfect competition. 
B)  public interest theory of regulation. 
C)  capture theory of regulation. 
D)  public choice theory of regulation. 
A)  theory of imperfect competition. 
B)  public interest theory of regulation. 
C)  capture theory of regulation. 
D)  public choice theory of regulation.

Question 3

Airline deregulation resulted in:

Accepted Answer

A)  changes in safety regulations. 
B)  an increase in airfares. 
C)  mergers and consolidations. 
D)  a reduction in air travel. 
A)  changes in safety regulations. 
B)  an increase in airfares. 
C)  mergers and consolidations. 
D)  a reduction in air travel.

Question 4

The idea that government regulations often end up by serving the regulated firms is called:

Accepted Answer

A)  public choice theory. 
B)  public interest theory. 
C)  the capture theory of regulation. 
D)  the rational ignorance theory of regulation. 
A)  public choice theory. 
B)  public interest theory. 
C)  the capture theory of regulation. 
D)  the rational ignorance theory of regulation.

Question 5

If your software company cooperated with other software firms to raise prices, then your company would be in violation of 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 6

Airline deregulation is generally held to have resulted in:

Accepted Answer

A)  fewer frequent flyer programs. 
B)  lower fares. 
C)  a decrease in safety. 
D)  a reduction in passenger miles flown. 
A)  fewer frequent flyer programs. 
B)  lower fares. 
C)  a decrease in safety. 
D)  a reduction in passenger miles flown.

Question 7

The ALCOA and Brown Shoe cases added certainty and strength to the antitrust movement.

Accepted Answer

A) True 
 B)False

Question 8

Critics of antitrust policies point out that a ________ firm may be able to ________ small firms from competing, but other _______ firms may enter the industry in pursuit of ________ .

Accepted Answer

A)  small; prevent; large; smaller profits. 
B)  large; prevent; equally large; economic profits 
C)  large; discourage; small; extraordinary profits. 
D)  small; interfere with; small; market share. 
A)  small; prevent; large; smaller profits. 
B)  large; prevent; equally large; economic profits 
C)  large; discourage; small; extraordinary profits. 
D)  small; interfere with; small; market share.

Question 9

The inclination of regulatory agencies to promote the interests of government agency employees over those of the public is explained by the:

Accepted Answer

A)  theory of imperfect competition. 
B)  public interest theory of regulation. 
C)  capture theory of regulation. 
D)  public choice theory of regulation. 
A)  theory of imperfect competition. 
B)  public interest theory of regulation. 
C)  capture theory of regulation. 
D)  public choice theory of regulation.

Question 10

In the Case in Point on antitrust policy's impact on consumers, the Ashenfelter and Hosken analysis indicated that four out of five mergers in the consumer products industry resulted in _____ prices suggesting that, pending further study, _____ government intervention might be needed.

Accepted Answer

A)  higher; less 
B)  higher; more 
C)  lower; less 
D)  lower; more 
A)  higher; less 
B)  higher; more 
C)  lower; less 
D)  lower; more

Question 11

Firms in Japan and Europe are subject to _______ antitrust restrictions than (as) U.S.firms.

Accepted Answer

A)  the same 
B)  more 
C)  less 
D)  more international 
A)  the same 
B)  more 
C)  less 
D)  more international

Question 12

The Sherman Antitrust Act was an amendment to the original antitrust legislation in the United States, the Clayton Act.

Accepted Answer

A) True 
 B)False

Question 13

A merger which involves firms at different stages of production of the same good is called a horizontal merger.

Accepted Answer

A) True 
 B)False

Question 14

If the largest software company in the industry merges with the next two biggest software firms, such that competition is substantially reduced, it would be in violation of the:

Accepted Answer

A)  Clayton Act. 
B)  Robinson-Patman Act. 
C)  Federal Trade Commission Act. 
D)  Celler-Kefauver Act. 
A)  Clayton Act. 
B)  Robinson-Patman Act. 
C)  Federal Trade Commission Act. 
D)  Celler-Kefauver Act.

Question 15

An action that violates the law where no consideration is given to the circumstances surrounding the action is called illegal per se.

Accepted Answer

A) True 
 B)False

Question 16

Economist Kip Viscusi estimated that the asbestos ban costs ____ per life saved.

Accepted Answer

A)  $100,000 
B)  $1.0 million 
C)  $1.5 million 
D)  $131 million 
A)  $100,000 
B)  $1.0 million 
C)  $1.5 million 
D)  $131 million

Question 17

A cost imposed on society by consumer protection laws is:

Accepted Answer

A)  a decline in product availability. 
B)  the promotion of society's well-being. 
C)  the use of fewer resources in administration and enforcement. 
D)  a higher rate of technological advances. 
A)  a decline in product availability. 
B)  the promotion of society's well-being. 
C)  the use of fewer resources in administration and enforcement. 
D)  a higher rate of technological advances.

An action whose illegality depends on the circumstances surrounding the action is said to be subject to:

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

Airline deregulation resulted in:

The idea that government regulations often end up by serving the regulated firms is called:

If your software company cooperated with other software firms to raise prices, then your company would be in violation of the:

Airline deregulation is generally held to have resulted in:

The ALCOA and Brown Shoe cases added certainty and strength to the antitrust movement.

Critics of antitrust policies point out that a ____ firm may be able to small firms from competing, but other _ firms may enter the industry in pursuit of ______ .

The inclination of regulatory agencies to promote the interests of government agency employees over those of the public is explained by the:

In the Case in Point on antitrust policy's impact on consumers, the Ashenfelter and Hosken analysis indicated that four out of five mergers in the consumer products industry resulted in _ prices suggesting that, pending further study, _ government intervention might be needed.

Firms in Japan and Europe are subject to _______ antitrust restrictions than (as) U.S.firms.

The Sherman Antitrust Act was an amendment to the original antitrust legislation in the United States, the Clayton Act.

A merger which involves firms at different stages of production of the same good is called a horizontal merger.

If the largest software company in the industry merges with the next two biggest software firms, such that competition is substantially reduced, it would be in violation of the:

An action that violates the law where no consideration is given to the circumstances surrounding the action is called illegal per se.

Economist Kip Viscusi estimated that the asbestos ban costs ____ per life saved.

A cost imposed on society by consumer protection laws is:

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

An action whose illegality depends on the circumstances surrounding the action is said to be subject to:

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

Airline deregulation resulted in:

The idea that government regulations often end up by serving the regulated firms is called:

If your software company cooperated with other software firms to raise prices, then your company would be in violation of the:

Airline deregulation is generally held to have resulted in:

The ALCOA and Brown Shoe cases added certainty and strength to the antitrust movement.

Critics of antitrust policies point out that a ________ firm may be able to ________ small firms from competing, but other _______ firms may enter the industry in pursuit of ________ .

The inclination of regulatory agencies to promote the interests of government agency employees over those of the public is explained by the:

In the Case in Point on antitrust policy's impact on consumers, the Ashenfelter and Hosken analysis indicated that four out of five mergers in the consumer products industry resulted in _____ prices suggesting that, pending further study, _____ government intervention might be needed.

Firms in Japan and Europe are subject to _______ antitrust restrictions than (as) U.S.firms.

The Sherman Antitrust Act was an amendment to the original antitrust legislation in the United States, the Clayton Act.

A merger which involves firms at different stages of production of the same good is called a horizontal merger.

If the largest software company in the industry merges with the next two biggest software firms, such that competition is substantially reduced, it would be in violation of the:

An action that violates the law where no consideration is given to the circumstances surrounding the action is called illegal per se.

Economist Kip Viscusi estimated that the asbestos ban costs ____ per life saved.

A cost imposed on society by consumer protection laws is:

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

Critics of antitrust policies point out that a ____ firm may be able to small firms from competing, but other _ firms may enter the industry in pursuit of ______ .

In the Case in Point on antitrust policy's impact on consumers, the Ashenfelter and Hosken analysis indicated that four out of five mergers in the consumer products industry resulted in _ prices suggesting that, pending further study, _ government intervention might be needed.