Question 1

Those who may file antitrust lawsuits against violators of the Sherman Act include the following, except

Accepted Answer

A)  injured private parties.
B)  state attorneys general.
C)  the U.S. Department of Labor.
D)  the U.S. Department of Justice.E) A) and C)
F) A) and B)

Question 2

The situation where a single firm can supply the product to an entire market at a lower unit cost than if the market were split among a number of competing firms, is called a

Accepted Answer

A)  dominant firm oligopoly.
B)  structured market.
C)  natural monopoly.
D)  trust.E) None of the above
F) B) and D)

Question 3

An example of a government organization involved primarily in public regulation or industrial regulation of natural monopolies would be the

Accepted Answer

A)  Food and Drug Administration.
B)  Environmental Protection Agency.
C)  Federal Energy Regulatory Commission.
D)  Occupational Safety and Health Administration.E) A) and B)
F) All of the above

Question 4

"Behavioralists" in antitrust applications believe that a firm that dominates a market is not necessarily behaving unfairly.

Accepted Answer

A) True 
 B)False

Question 5

The government was successful in gaining an antitrust conviction in the

Accepted Answer

A)  U.S. Steel case.
B)  IBM case.
C)  Alcoa case.
D)  DuPont cellophane case.E) C) and D)
F) All of the above

Question 6

In 2000, Microsoft was fined $2.7 billion for

Accepted Answer

A)  using anticompetitive means to promote its Internet Explorer web browser.
B)  monopolizing the market for word processing software.
C)  conspiring with Netscape and Sun to monopolize the market for Internet browsers.
D)  deliberately pricing Windows 95 and 98 below marginal cost to monopolize the market for operating systems for personal computers.E) A) and C)
F) B) and C)

Question 7

The Federal Trade Commission

Accepted Answer

A)  is empowered to hold public hearings to investigate unfair practices.
B)  prohibits interlocking directorates in interstate industries.
C)  regulates airline fares.
D)  regulates such transportation industries as railroads and trucking.E) B) and C)
F) B) and D)

Question 8

Using antitrust law to split up an unregulated natural monopoly into several competing firms

Accepted Answer

A)  would reduce product price.
B)  would increase product price.
C)  might either increase product price or reduce product price.
D)  would reduce average total cost.E) C) and D)
F) A) and D)

Question 9

How do economists view the overall effectiveness of antitrust policy?

Accepted Answer

Most economists conclude that, overall, ...

Question 10

The public interest theory of industrial regulation contends that

Accepted Answer

A)  while industrial regulation is sound in theory, bureaucrats allow monopolists to obtain excessive profits.
B)  regulated monopolies are tantamount to legal cartels.
C)  the objective of regulation is to protect the public from the market power inherent in natural monopolies.
D)  firms in some industries want to be regulated.E) A) and D)
F) C) and D)

Question 11

The cornerstone of antitrust legislation in the U.S. is the

Accepted Answer

A)  Clayton Act.
B)  Sherman Act.
C)  Celler-Kefauver Act.
D)  Federal Trade Commission Act.E) B) and C)
F) A) and B)

Question 12

A merger between McDonald's and Burger King would be an example of a

Accepted Answer

A)  conglomerate merger.
B)  horizontal merger.
C)  vertical merger.
D)  parallel merger.E) B) and C)
F) A) and D)

Question 13

How did the Clayton Act of 1914 strengthen and clarify the intent of the Sherman Act of 1890?

Accepted Answer

The Clayton Act of 1914 elabor...

Question 14

An industry has five firms, each with a market share of 20 percent. There is no foreign competition, entry into the industry is difficult, and no firm is on the verge of bankruptcy. If two of the firms in the industry seek to merge, this action would most likely be opposed by the government because the Herfindahl index for the industry is

Accepted Answer

A)  2,000 and the merger would increase the index by 500.
B)  2,000 and the merger would increase the index by 800.
C)  2,500 and the merger would increase the index by 500.
D)  2,500 and the merger would increase the index by 1,200.E) B) and D)
F) B) and C)

Question 15

Which of the following made monopoly and restraints of trade criminal offenses against the federal government?

Accepted Answer

A)  Celler-Kefauver Act of 1950
B)  Wheeler-Lea Act of 1938
C)  Clayton Act of 1914
D)  Sherman Act of 1890E) B) and C)
F) A) and D)

Question 16

Which of the following is not a true statement about how social regulation differs from industrial regulation?

Accepted Answer

A)  Social regulation applies to many industries across the board, whereas industrial regulation is more specific to one industry.
B)  Social regulation intrudes into the day-to-day production processes of companies more so than industrial regulation.
C)  Social regulation is enforced by state and local governments, whereas industrial regulation tends to be the domain of the federal government.
D)  Social regulation has expanded rapidly during the same period in which industrial regulation has waned.E) B) and C)
F) None of the above

Question 17

Regulation of business, according to the legal cartel theory, stems from

Accepted Answer

A)  the public wanting protection from potentially capricious firms.
B)  economists who see greater efficiency in regulated industries.
C)  lawyers whose jobs are more secure in cartels.
D)  firms wanting to be regulated in order to shut off competition.E) B) and C)
F) C) and D)

Question 18

Which act sharpened and clarified the provisions of the Sherman Act and sought to outlaw the techniques that firms might use to gain monopoly power?

Accepted Answer

A)  Clayton Act
B)  Wheeler-Lea Act
C)  Celler-Kefauver Act
D)  Federal Trade Commission ActE) A) and D)
F) B) and D)

Question 19

Which legislative act provided for the industrial regulation of the railroad industry by the Federal government?

Accepted Answer

A)  Interstate Commerce Act
B)  Railway Labor Act
C)  Sherman Act
D)  Clayton ActE) A) and D)
F) C) and D)

Question 20

Tying agreements are contracts by which retailers agree to charge the prices that manufacturers set on branded goods.

Accepted Answer

A) True 
 B)False

Exam 21: Antitrust Policy and Regulation

Regulation of business, according to the legal cartel theory, stems from

Correct Answer
verified

Which of the following is not a true statement about how social regulation differs from industrial regulation?

Correct Answer
verified

A merger between McDonald's and Burger King would be an example of a

Correct Answer
verified

Which act sharpened and clarified the provisions of the Sherman Act and sought to outlaw the techniques that firms might use to gain monopoly power?

Correct Answer
verified

An example of a government organization involved primarily in public regulation or industrial regulation of natural monopolies would be the

Correct Answer
verified

Those who may file antitrust lawsuits against violators of the Sherman Act include the following, except

Correct Answer
verified

"Behavioralists" in antitrust applications believe that a firm that dominates a market is not necessarily behaving unfairly.

Correct Answer
verified

Tying agreements are contracts by which retailers agree to charge the prices that manufacturers set on branded goods.

Correct Answer
verified

The situation where a single firm can supply the product to an entire market at a lower unit cost than if the market were split among a number of competing firms, is called a

Correct Answer
verified

The cornerstone of antitrust legislation in the U.S. is the

Correct Answer
verified

Correct Answer
verified

Using antitrust law to split up an unregulated natural monopoly into several competing firms

Correct Answer
verified

The public interest theory of industrial regulation contends that

Correct Answer
verified

Which legislative act provided for the industrial regulation of the railroad industry by the Federal government?

Correct Answer
verified

Which of the following made monopoly and restraints of trade criminal offenses against the federal government?

Correct Answer
verified

In 2000, Microsoft was fined $2.7 billion for

Correct Answer
verified

The government was successful in gaining an antitrust conviction in the

Correct Answer
verified

How did the Clayton Act of 1914 strengthen and clarify the intent of the Sherman Act of 1890?

Correct Answer
verified
The Clayton Act of 1914 elabor...
View Answer

The Federal Trade Commission

Correct Answer
verified

How do economists view the overall effectiveness of antitrust policy?

Correct Answer
verified
Most economists conclude that, overall, ...
View Answer

Exam 21: Antitrust Policy and Regulation

Regulation of business, according to the legal cartel theory, stems from

Correct AnswerverifiedShow Answer

Which of the following is not a true statement about how social regulation differs from industrial regulation?

Correct AnswerverifiedShow Answer

A merger between McDonald's and Burger King would be an example of a

Correct AnswerverifiedShow Answer

Which act sharpened and clarified the provisions of the Sherman Act and sought to outlaw the techniques that firms might use to gain monopoly power?

Correct AnswerverifiedShow Answer

An example of a government organization involved primarily in public regulation or industrial regulation of natural monopolies would be the

Correct AnswerverifiedShow Answer

Those who may file antitrust lawsuits against violators of the Sherman Act include the following, except

Correct AnswerverifiedShow Answer

"Behavioralists" in antitrust applications believe that a firm that dominates a market is not necessarily behaving unfairly.

Correct AnswerverifiedShow Answer

Tying agreements are contracts by which retailers agree to charge the prices that manufacturers set on branded goods.

Correct AnswerverifiedShow Answer

The situation where a single firm can supply the product to an entire market at a lower unit cost than if the market were split among a number of competing firms, is called a

Correct AnswerverifiedShow Answer

The cornerstone of antitrust legislation in the U.S. is the

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Using antitrust law to split up an unregulated natural monopoly into several competing firms

Correct AnswerverifiedShow Answer

The public interest theory of industrial regulation contends that

Correct AnswerverifiedShow Answer

Which legislative act provided for the industrial regulation of the railroad industry by the Federal government?

Correct AnswerverifiedShow Answer

Which of the following made monopoly and restraints of trade criminal offenses against the federal government?

Correct AnswerverifiedShow Answer

In 2000, Microsoft was fined $2.7 billion for

Correct AnswerverifiedShow Answer

The government was successful in gaining an antitrust conviction in the

Correct AnswerverifiedShow Answer

How did the Clayton Act of 1914 strengthen and clarify the intent of the Sherman Act of 1890?

Correct AnswerverifiedThe Clayton Act of 1914 elabor...View AnswerShow Answer

The Federal Trade Commission

Correct AnswerverifiedShow Answer

How do economists view the overall effectiveness of antitrust policy?

Correct AnswerverifiedMost economists conclude that, overall, ...View AnswerShow Answer

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The Clayton Act of 1914 elabor...
View Answer

Correct Answer
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Correct Answer
verified
Most economists conclude that, overall, ...
View Answer