Question 1

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 C)
F) B) and C)

Question 2

What is most likely to happen as the output of a natural monopoly increases over the range of market demand?

Accepted Answer

A)   There is a small decrease in average total cost and then it increases as output increases.
B)   There is an increase in average total cost and then it decreases as output increases.
C)   Average total cost increases as output increases.
D)   Average total cost decreases as output increases.E) A) and B)
F) All of the above

Question 3

The administrative agency charged with enforcing the provisions of the Clayton Act (1914)  was established by additional legislation in the same year. This legislation was the

Accepted Answer

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

Question 4

A conglomerate merger

Accepted Answer

A)   can extend the line of products sold, extend the territories in which products are sold, or combine totally unrelated products.
B)   is defined as a merger involving two firms that previously had a buyer-seller relationship.
C)   is defined as a merger involving two firms producing the same or similar products and selling them in the same geographical market.
D)   is illegal, per se.E) A) and B)
F) A) and C)

Question 5

The cornerstone of antitrust policy in the United States is generally considered to be the Sherman Antitrust Act of 1890.

Accepted Answer

A) True 
 B)False

Question 6

The Celler-Kefauver Act of 1950

Accepted Answer

A)   modified patent legislation by reducing the number of years over which a patent is applicable.
B)   prohibited any firm from acquiring the real assets of another firm where the effect was to lessen competition.
C)   declared all conglomerate mergers to be illegal.
D)   prohibited any firm from buying the stock of another firm where the effect was to lessen competition.E) B) and D)
F) B) and C)

Question 7

The largest efficiency gains from deregulation have occurred in the

Accepted Answer

A)   natural gas and cable television industries.
B)   cable television and railroad industries.
C)   communications and stock-brokering industries.
D)   airlines, trucking, and railroad industries.E) A) and B)
F) A) and D)

Question 8

Which one of the following is concerned with industrial regulation, as distinct from social regulation?

Accepted Answer

A)   Occupational Safety and Health Administration
B)   Consumer Products Safety Commission
C)   Federal Communications Commission
D)   Environmental Protection AgencyE) C) and D)
F) B) and D)

Question 9

The view that the mere possession of monopoly power is a violation of the antitrust laws, as in the Alcoa case of 1945, suggests that the application of antitrust laws should be based on industry

Accepted Answer

A)   behavior.
B)   size.
C)   efficiency.
D)   structure.E) A) and B)
F) A) and C)

Question 10

Which of the following is a primary concern of social regulation?

Accepted Answer

A)   price-fixing
B)   per se violation
C)   product design
D)   industry concentrationE) All of the above
F) C) and D)

Question 11

A caption that could serve as a warning to proponents of social regulation is

Accepted Answer

A)   "There is no free lunch."
B)   "The rule of reason will prevail."
C)   "The public interest will prevail."
D)   "Protect the greatest number."E) None of the above
F) B) and C)

Question 12

Unfair advertising practices are investigated by the Federal Trade Commission.

Accepted Answer

A) True 
 B)False

Question 13

Monopolization is illegal under Section 1 of the Sherman Act.

Accepted Answer

A) True 
 B)False

Question 14

The Celler-Kefauver Act outlawed interlocking directorates.

Accepted Answer

A) True 
 B)False

Question 15

The merger of a firm in one industry with another firm in the same industry that sells similar products is called a

Accepted Answer

A)   vertical merger.
B)   secondary merger.
C)   horizontal merger.
D)   conglomerate merger.E) All of the above
F) C) and D)

Question 16

Which of the following does not necessarily violate antitrust laws?

Accepted Answer

A)   deceptive advertising
B)   price discrimination
C)   price-fixing
D)   interlocking directoratesE) B) and C)
F) A) and D)

Question 17

(Last Word)  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) B) and D)
F) None of the above

Exam 21: Antitrust Policy and Regulation

The cornerstone of antitrust policy in the United States is generally considered to be the Sherman Antitrust Act of 1890.

Correct Answer
verified

A caption that could serve as a warning to proponents of social regulation is

Correct Answer
verified

Which of the following does not necessarily violate antitrust laws?

Correct Answer
verified

The largest efficiency gains from deregulation have occurred in the

Correct Answer
verified

The Celler-Kefauver Act outlawed interlocking directorates.

Correct Answer
verified

The view that the mere possession of monopoly power is a violation of the antitrust laws, as in the Alcoa case of 1945, suggests that the application of antitrust laws should be based on industry

Correct Answer
verified

The administrative agency charged with enforcing the provisions of the Clayton Act (1914) was established by additional legislation in the same year. This legislation was the

Correct Answer
verified

Which of the following is a primary concern of social regulation?

Correct Answer
verified

The merger of a firm in one industry with another firm in the same industry that sells similar products is called a

Correct Answer
verified

Which one of the following is concerned with industrial regulation, as distinct from social regulation?

Correct Answer
verified

A conglomerate merger

Correct Answer
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The Celler-Kefauver Act of 1950

Correct Answer
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(Last Word) In 2000, Microsoft was fined $2.7 billion for

Correct Answer
verified

What is most likely to happen as the output of a natural monopoly increases over the range of market demand?

Correct Answer
verified

Unfair advertising practices are investigated by the Federal Trade Commission.

Correct Answer
verified

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

Correct Answer
verified

Monopolization is illegal under Section 1 of the Sherman Act.

Correct Answer
verified

Exam 21: Antitrust Policy and Regulation

The cornerstone of antitrust policy in the United States is generally considered to be the Sherman Antitrust Act of 1890.

Correct AnswerverifiedShow Answer

A caption that could serve as a warning to proponents of social regulation is

Correct AnswerverifiedShow Answer

Which of the following does not necessarily violate antitrust laws?

Correct AnswerverifiedShow Answer

The largest efficiency gains from deregulation have occurred in the

Correct AnswerverifiedShow Answer

The Celler-Kefauver Act outlawed interlocking directorates.

Correct AnswerverifiedShow Answer

The view that the mere possession of monopoly power is a violation of the antitrust laws, as in the Alcoa case of 1945, suggests that the application of antitrust laws should be based on industry

Correct AnswerverifiedShow Answer

The administrative agency charged with enforcing the provisions of the Clayton Act (1914) was established by additional legislation in the same year. This legislation was the

Correct AnswerverifiedShow Answer

Which of the following is a primary concern of social regulation?

Correct AnswerverifiedShow Answer

The merger of a firm in one industry with another firm in the same industry that sells similar products is called a

Correct AnswerverifiedShow Answer

Which one of the following is concerned with industrial regulation, as distinct from social regulation?

Correct AnswerverifiedShow Answer

A conglomerate merger

Correct AnswerverifiedShow Answer

The Celler-Kefauver Act of 1950

Correct AnswerverifiedShow Answer

(Last Word) In 2000, Microsoft was fined $2.7 billion for

Correct AnswerverifiedShow Answer

What is most likely to happen as the output of a natural monopoly increases over the range of market demand?

Correct AnswerverifiedShow Answer

Unfair advertising practices are investigated by the Federal Trade Commission.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Monopolization is illegal under Section 1 of the Sherman Act.

Correct AnswerverifiedShow Answer

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