Question 1

Which one of the following is not correct?

Accepted Answer

A)  In antitrust cases defendants attempt to define the relevant market broadly.
B)  The courts have varied over time in their interpretations of the antitrust statutes.
C)  Antitrust suits can be originated only by the Federal Trade Commission.
D)  In antitrust cases the prosecution attempts to define the relevant market narrowly.E) B) and D)
F) A) and B)

Question 2

Antitrust policy pertains to government regulation of firms' prices within selected industries, such as utilities.

Accepted Answer

A) True 
 B)False

Question 3

Most economists agree that, overall, U.S.antitrust policy has been most successful in

Accepted Answer

A)  promoting competition and efficiency.
B)  remedying existing anticompetitive behavior.
C)  deterring price-fixing and anticompetitive mergers.
D)  breaking up monopolies.E) A) and C)
F) None of the above

Question 4

If Tyson Corporation, a firm that raises and processes chickens, combined with Kentucky Fried Chicken, the resulting merger would be an example of a

Accepted Answer

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

Question 5

The Americans with Disabilities Act of 1990 is an example of industrial regulation.

Accepted Answer

A) True 
 B)False

Question 6

Which one of the following is concerned with social regulation?

Accepted Answer

A)  Equal Employment Opportunity Commission
B)  Federal Communications Commission
C)  Sherman Commission
D)  Federal Energy Regulatory CommissionE) B) and D)
F) All of the above

Question 7

In the 1911 Standard Oil case, the U.S.Supreme Court found Standard Oil

Accepted Answer

A)  guilty of tax evasion for merger activity.
B)  not guilty of tax evasion for merger activity.
C)  guilty of monopolizing the petroleum industry.
D)  not guilty of monopolizing the petroleum industry.E) C) and D)
F) B) and C) C

Question 8

Defenders of social regulation point out that

Accepted Answer

A)  social regulation is a better alternative than unregulated natural monopoly.
B)  critics who stress the high administrative and compliance costs of social regulation underestimate the social benefits that the regulations produce.
C)  the number of regulatory agencies has declined over the past two decades.
D)  social regulations reduce product prices.E) A) and B)
F) A) and C)

Question 9

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) B) and C)

Question 10

Responsibility for enforcing the antitrust laws rests

Accepted Answer

A)  with the Interstate Commerce Commission.
B)  with both the Department of Justice and the Federal Trade Commission.
C)  solely with the Federal Trade Commission.
D)  solely with the Department of Justice.E) None of the above
F) A) and B)

Question 11

Using the Internet, some firms are now employing software that uses pricing algorithms to constantly adjust their online prices in response to what rivals are charging for similar products.This is making it easier for the

Accepted Answer

A)  firms to collude tacitly in their pricing schemes.
B)  government to prove price-fixing.
C)  firms to gain monopoly power over their rivals.
D)  government to enforce industrial regulation.E) A) and B)
F) A) and C) A

Question 12

The decision on the DuPont cellophane case of 1956 dealt with the issue of

Accepted Answer

A)  unfair advertising practices.
B)  determining the relevant market for a particular product.
C)  DuPont's ownership of General Motors stock.
D)  price-fixing in the chemical industry.E) A) and C)
F) All of the above

Question 13

Restructuring of a major industry resulted from the

Accepted Answer

A)  U.S.Steel case.
B)  AT&T case.
C)  IBM case.
D)  DuPont cellophane case.E) C) and D)
F) A) and C)

Question 14

The Herfindahl index measures the

Accepted Answer

A)  size of the market share of the four largest firms in an industry.
B)  sum of the squared values of market shares of firms in an industry.
C)  increase in economic concentration resulting from a conglomerate merger.
D)  effect of per se violation in antitrust cases.E) A) and B)
F) None of the above

Question 15

The legislation that prohibits the acquisition of assets of another company if the transaction would significantly reduce competition, thereby closing a loophole in the Clayton Act, is the

Accepted Answer

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

Question 16

Social regulation

Accepted Answer

A)  was developed as a substitute for industrial regulation.
B)  has declined in importance in recent years.
C)  applies more broadly and affects more people than industrial regulation.
D)  is more concerned with the overall standard of living of society rather than with details of production processes.E) B) and C)
F) A) and D)

Question 17

(Last Word)  In 1994, the U.S.Department of Justice stopped which of the following practices?

Accepted Answer

A)  airlines explicitly agreeing to divide the market so that each carrier could have a local monopoly
B)  airlines preposting fare changes as a form of tacit collusion
C)  Microsoft using its monopoly power to coerce computer manufacturers to favor Internet Explorer over rival browsers
D)  price-fixing by Japanese, German, and Swedish auto parts makersE) All of the above
F) A) and D)

Question 18

The effectiveness of regulation is sometimes criticized because

Accepted Answer

A)  regulators try to please everybody.
B)  of the high profits in regulated industries.
C)  regulators don't know how to regulate industries.
D)  regulators usually have been closely associated with the industries they regulate.E) B) and C)
F) A) and B)

Question 19

In antitrust law, "price-fixing" refers to

Accepted Answer

A)  the government fixing the prices of products of antitrust violators.
B)  a company fixing the price of its own product regardless of the degree of competition.
C)  competitors colluding to set their prices collectively.
D)  a company paying its suppliers a fixed price for certain inputs.E) None of the above
F) A) and D)

Question 20

All of the following can file antitrust charges under the Sherman Act except

Accepted Answer

A)  the U.S.Justice Department.
B)  state attorneys general.
C)  injured private parties.
D)  the Federal Energy Regulatory Commission.E) C) and D)
F) None of the above

Exam 21: Antitrust Policy and Regulation

Which one of the following is not correct?

Correct AnswerverifiedShow Answer

Antitrust policy pertains to government regulation of firms' prices within selected industries, such as utilities.

Correct AnswerverifiedShow Answer

Most economists agree that, overall, U.S.antitrust policy has been most successful in

Correct AnswerverifiedShow Answer

If Tyson Corporation, a firm that raises and processes chickens, combined with Kentucky Fried Chicken, the resulting merger would be an example of a

Correct AnswerverifiedShow Answer

The Americans with Disabilities Act of 1990 is an example of industrial regulation.

Correct AnswerverifiedShow Answer

Which one of the following is concerned with social regulation?

Correct AnswerverifiedShow Answer

In the 1911 Standard Oil case, the U.S.Supreme Court found Standard Oil

Correct AnswerverifiedC

Defenders of social regulation point out that

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Responsibility for enforcing the antitrust laws rests

Correct AnswerverifiedShow Answer

Using the Internet, some firms are now employing software that uses pricing algorithms to constantly adjust their online prices in response to what rivals are charging for similar products.This is making it easier for the

Correct AnswerverifiedA

The decision on the DuPont cellophane case of 1956 dealt with the issue of

Correct AnswerverifiedShow Answer

Restructuring of a major industry resulted from the

Correct AnswerverifiedShow Answer

The Herfindahl index measures the

Correct AnswerverifiedShow Answer

The legislation that prohibits the acquisition of assets of another company if the transaction would significantly reduce competition, thereby closing a loophole in the Clayton Act, is the

Correct AnswerverifiedD

Social regulation

Correct AnswerverifiedShow Answer

(Last Word) In 1994, the U.S.Department of Justice stopped which of the following practices?

Correct AnswerverifiedShow Answer

The effectiveness of regulation is sometimes criticized because

Correct AnswerverifiedShow Answer

In antitrust law, "price-fixing" refers to

Correct AnswerverifiedShow Answer

All of the following can file antitrust charges under the Sherman Act except

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
C

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
D

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified