Question 1

The purpose of antitrust laws is to:

Accepted Answer

A)  reduce anticompetitive activities. 
B)  regulate electric companies. 
C)  guarantee worker safety. 
D)  promote quality products. 
A)  reduce anticompetitive activities. 
B)  regulate electric companies. 
C)  guarantee worker safety. 
D)  promote quality products. A

Question 2

The Sherman Antitrust Act of 1890 is the federal antitrust law that prohibits:

Accepted Answer

A)  monopolization and conspiracies to restrain trade. 
B)  mergers the substantially lessen competition. 
C)  exclusive dealing, tying contracts, and interlocking directorates. 
D)  unfair methods of competition in commerce. 
A)  monopolization and conspiracies to restrain trade. 
B)  mergers the substantially lessen competition. 
C)  exclusive dealing, tying contracts, and interlocking directorates. 
D)  unfair methods of competition in commerce. A

Question 3

Which of the following is concerned primarily with mergers?

Accepted Answer

A)  The Sherman Antitrust Act. 
B)  The Clayton Act. 
C)  The Robinson-Patman Act. 
D)  The Celler-Kefauver Act. 
A)  The Sherman Antitrust Act. 
B)  The Clayton Act. 
C)  The Robinson-Patman Act. 
D)  The Celler-Kefauver Act. D

Question 4

Antitrust laws in other countries are much stronger than U.S. antitrust laws.

Accepted Answer

A) True 
 B)False

Question 5

The Federal Trade Commission:

Accepted Answer

A)  was abolished by the Celler-Kefauver Act. 
B)  was established when the Antitrust Division of the Justice Department was eliminated. 
C)  largely deals with utility regulation. 
D)  is a weak and ineffective government agency. 
E)  investigates unfair and deceptive trade practices. 
A)  was abolished by the Celler-Kefauver Act. 
B)  was established when the Antitrust Division of the Justice Department was eliminated. 
C)  largely deals with utility regulation. 
D)  is a weak and ineffective government agency. 
E)  investigates unfair and deceptive trade practices.

Question 6

A horizontal merger between two firms occurs when:

Accepted Answer

A)  the products of the merging firms were not related in any manner before the merger. 
B)  one firm is a producer of products, and the other firm is a producer of services. 
C)  one firm is a domestic firm, and the other is a foreign company. 
D)  the firms stood in a buyer-seller relationship before the merger. 
E)  the merger partners were competitors. 
A)  the products of the merging firms were not related in any manner before the merger. 
B)  one firm is a producer of products, and the other firm is a producer of services. 
C)  one firm is a domestic firm, and the other is a foreign company. 
D)  the firms stood in a buyer-seller relationship before the merger. 
E)  the merger partners were competitors.

Question 7

The per se rule would have not found a well-behaved, but gigantic, firm to be in violation of the antitrust laws.

Accepted Answer

A) True 
 B)False

Question 8

A merger of firms with a supplier is a:

Accepted Answer

A)  vertical merger. 
B)  conglomerate merger. 
C)  monopoly merger. 
D)  horizontal merger. 
A)  vertical merger. 
B)  conglomerate merger. 
C)  monopoly merger. 
D)  horizontal merger.

Question 9

In the Utah Pie case, the economic effect of the Supreme Court decision was to:

Accepted Answer

A)  prohibit the merger of two small pie companies. 
B)  encourage competition by ruling that the national competitors had engaged in illegal price discrimination. 
C)  encourage competition by ruling that the national competitors had not engaged in illegal price discrimination. 
D)  discourage competition by national competitors in the Salt Lake City market. 
A)  prohibit the merger of two small pie companies. 
B)  encourage competition by ruling that the national competitors had engaged in illegal price discrimination. 
C)  encourage competition by ruling that the national competitors had not engaged in illegal price discrimination. 
D)  discourage competition by national competitors in the Salt Lake City market.

Question 10

The Robinson-Patman Act of 1936 amended the: ​

Accepted Answer

A)  ​Sherman Act. 
B)  ​ Clayton Act. 
C)  ​ Federal Trade Commission Act. 
D)  ​ Wagner Act. 
A)  ​Sherman Act. 
B)  ​ Clayton Act. 
C)  ​ Federal Trade Commission Act. 
D)  ​ Wagner Act.

Question 11

Imperfect information is a rationale for regulation.

Accepted Answer

A) True 
 B)False

Question 12

Consider a regulated natural monopoly. If the regulatory commission wants to establish a fair-return price, then it should set a price ceiling where the demand curve crosses the monopoly's long-run:

Accepted Answer

A)  marginal revenue curve. 
B)  average revenue curve. 
C)  marginal cost curve. 
D)  average cost curve. 
A)  marginal revenue curve. 
B)  average revenue curve. 
C)  marginal cost curve. 
D)  average cost curve.

Question 13

Which agency was created by Congress in 1914 to investigate and regulate unfair methods of competition?

Accepted Answer

A)  Department of Justice. 
B)  Federal Trade Commission. 
C)  Interstate Commerce Commission. 
D)  General Accounting Office. 
A)  Department of Justice. 
B)  Federal Trade Commission. 
C)  Interstate Commerce Commission. 
D)  General Accounting Office.

Question 14

Exhibit 13-3 A monopolist  
-In Exhibit 13-3, if this industry is regulated and the regulatory commission sets price equal to average total cost, then:

Accepted Answer

A)  this firm would earn excess profit. 
B)  total revenue would equal marginal revenue. 
C)  the firm would suffer losses. 
D)  revenue would just be sufficient to cover costs. 
E)  revenue would just be sufficient to cover marginal cost. 
A)  this firm would earn excess profit. 
B)  total revenue would equal marginal revenue. 
C)  the firm would suffer losses. 
D)  revenue would just be sufficient to cover costs. 
E)  revenue would just be sufficient to cover marginal cost.

Question 15

A firm that places its assets in the custody of a board of trustees is called a:

Accepted Answer

A)  trust. 
B)  combination. 
C)  cartel. 
D)  all of these. 
A)  trust. 
B)  combination. 
C)  cartel. 
D)  all of these.

Question 16

Under a rule of reason approach, an act is illegal:

Accepted Answer

A)  only if it is shown to result in an anticompetitive outcome. 
B)  if two parties merge. 
C)  if a firm engages in price discrimination. 
D)  if two firms engage in price fixing. 
E)  if two firms undertake a joint venture 
A)  only if it is shown to result in an anticompetitive outcome. 
B)  if two parties merge. 
C)  if a firm engages in price discrimination. 
D)  if two firms engage in price fixing. 
E)  if two firms undertake a joint venture

Question 17

The airline and trucking industries came under regulation during the:

Accepted Answer

A)  1920s. 
B)  1930s. 
C)  1960s. 
D)  1970s. 
A)  1920s. 
B)  1930s. 
C)  1960s. 
D)  1970s.

Question 18

Under the original Clayton Act, which of the following was not illegal?

Accepted Answer

A)  Charging different prices for the same product. 
B)  Exclusive dealer agreements. 
C)  The purchase of the stock of a rival firm that lessens competition. 
D)  The purchase of the assets of a rival firm that lessens competition. 
A)  Charging different prices for the same product. 
B)  Exclusive dealer agreements. 
C)  The purchase of the stock of a rival firm that lessens competition. 
D)  The purchase of the assets of a rival firm that lessens competition.

Question 19

Which of the following statements is true?

Accepted Answer

A)  A vertical merger is a merger of firms that compete in the same market. 
B)  The rule of reason doctrine declares that the existence of monopoly alone is illegal. 
C)  Government regulation is economically justifiable for a natural monopoly. 
D)  Deficient information on unsafe products causes underconsumption. 
A)  A vertical merger is a merger of firms that compete in the same market. 
B)  The rule of reason doctrine declares that the existence of monopoly alone is illegal. 
C)  Government regulation is economically justifiable for a natural monopoly. 
D)  Deficient information on unsafe products causes underconsumption.

Question 20

Which of the following involved deregulation?

Accepted Answer

A)  Airline Deregulation Act of 1978. 
B)  Staggers Rail Act of 1980. 
C)  Motor Carrier Act of 1982. 
D)  All of these. 
A)  Airline Deregulation Act of 1978. 
B)  Staggers Rail Act of 1980. 
C)  Motor Carrier Act of 1982. 
D)  All of these.

The purpose of antitrust laws is to:

The Sherman Antitrust Act of 1890 is the federal antitrust law that prohibits:

Which of the following is concerned primarily with mergers?

Antitrust laws in other countries are much stronger than U.S. antitrust laws.

The Federal Trade Commission:

A horizontal merger between two firms occurs when:

The per se rule would have not found a well-behaved, but gigantic, firm to be in violation of the antitrust laws.

A merger of firms with a supplier is a:

In the Utah Pie case, the economic effect of the Supreme Court decision was to:

The Robinson-Patman Act of 1936 amended the:

Imperfect information is a rationale for regulation.

Consider a regulated natural monopoly. If the regulatory commission wants to establish a fair-return price, then it should set a price ceiling where the demand curve crosses the monopoly's long-run:

Which agency was created by Congress in 1914 to investigate and regulate unfair methods of competition?

Exhibit 13-3 A monopolist -In Exhibit 13-3, if this industry is regulated and the regulatory commission sets price equal to average total cost, then:

A firm that places its assets in the custody of a board of trustees is called a:

Under a rule of reason approach, an act is illegal:

The airline and trucking industries came under regulation during the:

Under the original Clayton Act, which of the following was not illegal?

Which of the following statements is true?

Which of the following involved deregulation?

Introducing the Economic Way of Thinking

Production Possibilities, Opportunity Cost, and Economic Growth

Market Demand and Supply

Markets in Action

Price Elasticity of Demand and Supply

Consumer Choice Theory

Production Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets

Income Distribution, Poverty, and Discrimination

Environmental Economics

International Trade and Finance

Economies in Transition

Growth and the

Filters

Exam 13: Antitrust and Regulation

The purpose of antitrust laws is to:

The Sherman Antitrust Act of 1890 is the federal antitrust law that prohibits:

Which of the following is concerned primarily with mergers?

Antitrust laws in other countries are much stronger than U.S. antitrust laws.

The Federal Trade Commission:

A horizontal merger between two firms occurs when:

The per se rule would have not found a well-behaved, but gigantic, firm to be in violation of the antitrust laws.

A merger of firms with a supplier is a:

In the Utah Pie case, the economic effect of the Supreme Court decision was to:

The Robinson-Patman Act of 1936 amended the: ​

Imperfect information is a rationale for regulation.

Consider a regulated natural monopoly. If the regulatory commission wants to establish a fair-return price, then it should set a price ceiling where the demand curve crosses the monopoly's long-run:

Which agency was created by Congress in 1914 to investigate and regulate unfair methods of competition?

Exhibit 13-3 A monopolist -In Exhibit 13-3, if this industry is regulated and the regulatory commission sets price equal to average total cost, then:

A firm that places its assets in the custody of a board of trustees is called a:

Under a rule of reason approach, an act is illegal:

The airline and trucking industries came under regulation during the:

Under the original Clayton Act, which of the following was not illegal?

Which of the following statements is true?

Which of the following involved deregulation?

Introducing the Economic Way of Thinking

Production Possibilities, Opportunity Cost, and Economic Growth

Market Demand and Supply

Markets in Action

Price Elasticity of Demand and Supply

Consumer Choice Theory

Production Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets

Income Distribution, Poverty, and Discrimination

Environmental Economics

International Trade and Finance

Economies in Transition

Growth and the

Filters

The Robinson-Patman Act of 1936 amended the: