Question 1

The Sherman Act of 1890 outlawed

Accepted Answer

A)   monopoly pricing and foreign trade.
B)   price discrimination and monopoly profits.
C)   restraint of trade and monopolization.
D)   foreign trade and monopolization.E) None of the above
F) All of the above

Question 2

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) None of the above

Question 3

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) All of the above
F) A) and C)

Question 4

Over the years since the early 1900s, the U.S. government's and courts' aggressiveness in interpreting and enforcing antitrust laws have

Accepted Answer

A)   been generally increasing.
B)   mostly been quite lax.
C)   fluctuated between tough and lax.
D)   been declining.E) All of the above
F) B) and C)

Question 5

Which of the following is mainly involved in social regulation?

Accepted Answer

A)   the Social Security Administration
B)   the Federal Communications Commission
C)   the Food and Drug Administration
D)   the Interstate Commerce CommissionE) A) and D)
F) A) and C)

Question 6

The Clayton Act prohibits the acquisition of of competing corporations when the acquisition would lessen competition; the Celler-Kefauver Act prohibits the acquisition of of one firm by another firm when the acquisition would lessen competition.

Accepted Answer

A)   stock; assets
B)   assets; stock
C)   stock; customers
D)   stock; bondsE) B) and D)
F) None of the above

Question 7

The agency responsible for investigating instances of fraudulent or misleading advertising is the

Accepted Answer

A)   Federal Trade Commission.
B)   Interstate Commerce Commission.
C)   Federal Communications Commission.
D)   Uniform Business Practices Commission.E) B) and C)
F) A) and B)

Question 8

Suppose Slow Ketchup requires that, as a condition of purchase, all restaurants using its product must buy and make available its new sales product. This arrangement is an example of

Accepted Answer

A)   price-fixing.
B)   an interlocking directive.
C)   a tying contract.
D)   price discrimination.E) A) and B)
F) None of the above

Question 9

Antitrust laws are essentially

Accepted Answer

A)   anti-monopoly.
B)   anti-banking.
C)   anti-finance.
D)   anti-competition.E) A) and D)
F) A) and C)

Question 10

A labor market application of the legal cartel theory of regulation would be

Accepted Answer

A)   unemployment benefits.
B)   the Full Employment Act.
C)   Equal Employment Opportunities provisions.
D)   occupational licensing.E) A) and B)
F) A) and C)

Question 11

The antitrust laws are enforced by the

Accepted Answer

A)   Federal Bureau of Investigation.
B)   Antimonopoly Court of Appeals.
C)   Federal Justice Department and the Federal Trade Commission.
D)   Department of Commerce.E) All of the above
F) B) and C)

Question 12

Price-fixing is illegal under Section 1 of the Sherman Act.

Accepted Answer

A) True 
 B)False

Question 13

Congressional representatives have called for extensive ergonomics regulations to reduce strains and injuries from repetitive activities by workers. Such regulation, if passed, would be a good example of

Accepted Answer

A)   industrial regulation.
B)   the principal-agent problem.
C)   the free-rider problem.
D)   social regulation.E) B) and C)
F) B) and D)

Question 14

An example of a horizontal merger is one between an airline and

Accepted Answer

A)   a chain of hotels.
B)   another airline.
C)   an aluminum company.
D)   a car rental company.E) A) and B)
F) B) and D)

Question 15

The sum of the squared values of market shares of firms in an industry is referred to as the

Accepted Answer

A)   concentration ratio.
B)   Herfindahl index.
C)   variance value.
D)   antitrust index.E) B) and C)
F) A) and D)

Question 16

Social, as distinct from industrial, regulation is the major focus of the

Accepted Answer

A)   Federal Trade Commission.
B)   Federal Energy Regulatory Commission.
C)   Federal Communications Commission.
D)   Consumer Product Safety Commission.E) B) and D)
F) A) and D)

Question 17

Which act specifically outlawed price discrimination when such discrimination is not justified on the basis of cost differences and when it reduces competition?

Accepted Answer

A)   Sherman Act
B)   Clayton Act
C)   Wheeler-Lea Act
D)   Federal Trade Commission ActE) A) and D)
F) None of the above

Question 18

Which of the following indexes is used in Federal merger guidelines?

Accepted Answer

A)   consumer price index
B)   unemployment benefits index
C)   employment cost index
D)   Herfindahl indexE) B) and C)
F) A) and D)

Question 19

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) B) and C)
F) A) and D)

Question 20

Price-fixing is considered to be a per se violation of the antitrust laws because

Accepted Answer

A)   a guilty verdict requires proof of injury to consumers.
B)   a guilty verdict requires proof of injury to other competitors.
C)   the rule of reason is applicable.
D)   a guilty verdict need only show that there was a conspiracy to fix prices, not that it succeeded.E) C) and D)
F) A) and D)

Exam 21: Antitrust Policy and Regulation

The Clayton Act prohibits the acquisition of of competing corporations when the acquisition would lessen competition; the Celler-Kefauver Act prohibits the acquisition of of one firm by another firm when the acquisition would lessen competition.

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The sum of the squared values of market shares of firms in an industry is referred to as the

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Social, as distinct from industrial, regulation is the major focus of the

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The agency responsible for investigating instances of fraudulent or misleading advertising is the

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The antitrust laws are enforced by the

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A labor market application of the legal cartel theory of regulation would be

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Which of the following is mainly involved in social regulation?

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

Correct AnswerverifiedShow Answer

Antitrust laws are essentially

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An example of a horizontal merger is one between an airline and

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Congressional representatives have called for extensive ergonomics regulations to reduce strains and injuries from repetitive activities by workers. Such regulation, if passed, would be a good example of

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which act specifically outlawed price discrimination when such discrimination is not justified on the basis of cost differences and when it reduces competition?

Correct AnswerverifiedShow Answer

The Sherman Act of 1890 outlawed

Correct AnswerverifiedShow Answer

Over the years since the early 1900s, the U.S. government's and courts' aggressiveness in interpreting and enforcing antitrust laws have

Correct AnswerverifiedShow Answer

Price-fixing is considered to be a per se violation of the antitrust laws because

Correct AnswerverifiedShow Answer

Which of the following indexes is used in Federal merger guidelines?

Correct AnswerverifiedShow Answer

Suppose Slow Ketchup requires that, as a condition of purchase, all restaurants using its product must buy and make available its new sales product. This arrangement is an example of

Correct AnswerverifiedShow Answer

Price-fixing is illegal under Section 1 of the Sherman Act.

Correct AnswerverifiedShow Answer

The public interest theory of industrial regulation contends that

Correct AnswerverifiedShow Answer

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