Question 1

The Utah Pie case was brought under which of the following laws?

Accepted Answer

A)  The Sherman Antitrust Act. 
B)  The Federal Trade Commission Act. 
C)  The Robinson-Patman Act. 
D)  The Celler-Kefauver Act. 
A)  The Sherman Antitrust Act. 
B)  The Federal Trade Commission Act. 
C)  The Robinson-Patman Act. 
D)  The Celler-Kefauver Act.

Question 2

Firms that place their assets in the custody of a board of trustees is called a(n):

Accepted Answer

A)  utility. 
B)  oligopoly. 
C)  trust. 
D)  all of these. 
A)  utility. 
B)  oligopoly. 
C)  trust. 
D)  all of these.

Question 3

A merger between two firms that have a supplier-purchaser relationship is:

Accepted Answer

A)  horizontal. 
B)  vertical. 
C)  conglomerate. 
D)  illegal. 
E)  inefficient. 
A)  horizontal. 
B)  vertical. 
C)  conglomerate. 
D)  illegal. 
E)  inefficient.

Question 4

The Robinson-Patman Act amended and further refined which of the following laws?

Accepted Answer

A)  The Sherman Antitrust Act. 
B)  The Celler-Kefauver Act. 
C)  The Clayton Act. 
D)  The FTC Act. 
E)  The Herfindahl-Hirschman Act. 
A)  The Sherman Antitrust Act. 
B)  The Celler-Kefauver Act. 
C)  The Clayton Act. 
D)  The FTC Act. 
E)  The Herfindahl-Hirschman Act.

Question 5

Government regulators can achieve efficiency for a natural monopoly by setting a price ceiling equal to the intersection of the demand curve and the:

Accepted Answer

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

Question 6

The Civil Aeronautics Board (CAB) was:

Accepted Answer

A)  established in 1934 and reorganized in 1984. 
B)  established in 1938 and eliminated in 1984. 
C)  established in 1938 and reorganized in 1991. 
D)  never a regulatory agency. 
A)  established in 1934 and reorganized in 1984. 
B)  established in 1938 and eliminated in 1984. 
C)  established in 1938 and reorganized in 1991. 
D)  never a regulatory agency.

Question 7

If two steel firms decide to merge, this merger would be classified as:

Accepted Answer

A)  a horizontal merger. 
B)  a vertical merger. 
C)  a conglomerate merger. 
D)  either a vertical or conglomerate merger depending on the nationality of the companies. 
E)  either a vertical or conglomerate merger depending on the market shares of the two companies. 
A)  a horizontal merger. 
B)  a vertical merger. 
C)  a conglomerate merger. 
D)  either a vertical or conglomerate merger depending on the nationality of the companies. 
E)  either a vertical or conglomerate merger depending on the market shares of the two companies.

Question 8

A manufacturer will sell its product only to retailers who agree to buy its brand. This is an example of:

Accepted Answer

A)  price discrimination. 
B)  exclusive dealing. 
C)  a tying contract. 
D)  interlocking directorates. 
A)  price discrimination. 
B)  exclusive dealing. 
C)  a tying contract. 
D)  interlocking directorates.

Question 9

Economic regulation occurs when:

Accepted Answer

A)  monopoly is the optimal market structure 
B)  the industry is highly competitive 
C)  the product is important to economic welfare 
D)  the government owns the assets of the industry 
E)  the product price, if left unregulated, would be too low 
A)  monopoly is the optimal market structure 
B)  the industry is highly competitive 
C)  the product is important to economic welfare 
D)  the government owns the assets of the industry 
E)  the product price, if left unregulated, would be too low

Question 10

Suppose a steel firm and a cookware company merge. This merger would be classified as:

Accepted Answer

A)  a horizontal merger. 
B)  a vertical merger. 
C)  a conglomerate merger. 
D)  either a horizontal or conglomerate merger, depending on the nationality of the companies. 
E)  either a horizontal or conglomerate merger, depending on the market shares of the two companies. 
A)  a horizontal merger. 
B)  a vertical merger. 
C)  a conglomerate merger. 
D)  either a horizontal or conglomerate merger, depending on the nationality of the companies. 
E)  either a horizontal or conglomerate merger, depending on the market shares of the two companies.

Question 11

The rule of reason was an antitrust law guideline that emphasized the importance of ____ over ____.

Accepted Answer

A)  price; quantity 
B)  quantity; price 
C)  law; the economy 
D)  size; behavior 
E)  behavior; size 
A)  price; quantity 
B)  quantity; price 
C)  law; the economy 
D)  size; behavior 
E)  behavior; size

Question 12

In the 1945 Alcoa antitrust case, the Court found ALCOA:

Accepted Answer

A)  not guilty of violating the Sherman Antitrust Act because it was a good monopoly. 
B)  did not have a good reason for having a large market share, so found it guilty. 
C)  guilty because its firm size was a per se violation of antitrust laws. 
D)  not guilty because it did not engage in any illegal or unfair acts. 
E)  was no threat to industrial democracy. 
A)  not guilty of violating the Sherman Antitrust Act because it was a good monopoly. 
B)  did not have a good reason for having a large market share, so found it guilty. 
C)  guilty because its firm size was a per se violation of antitrust laws. 
D)  not guilty because it did not engage in any illegal or unfair acts. 
E)  was no threat to industrial democracy.

Question 13

Which antitrust act prohibits exclusive dealing, tying contracts, stock acquisitions, and interlocking directorates?

Accepted Answer

A)  Sherman Antitrust Act of 1890. 
B)  Clayton Act of 1914. 
C)  Federal Trade Commission Act of 1914. 
D)  Robinson-Patman Act of 1936. 
E)  Cell-Kefauver Act of 1950. 
A)  Sherman Antitrust Act of 1890. 
B)  Clayton Act of 1914. 
C)  Federal Trade Commission Act of 1914. 
D)  Robinson-Patman Act of 1936. 
E)  Cell-Kefauver Act of 1950.

Question 14

The Celler-Kefauver Act of 1950 amended the:

Accepted Answer

A)  Sherman Antitrust Act. 
B)  Clayton Act. 
C)  Federal Trade Commission Act. 
D)  Robinson-Patman Act. 
A)  Sherman Antitrust Act. 
B)  Clayton Act. 
C)  Federal Trade Commission Act. 
D)  Robinson-Patman Act.

Question 15

According to the rule of reason, when would the courts find a monopoly in violation of the Sherman Antitrust Act?

Accepted Answer

A)  Always-monopoly is per se illegal under the rule of reason. 
B)  Only when the monopoly created negative externalities. 
C)  Only when the monopoly engaged in illegal business practices. 
D)  Only when the monopoly charged excessively high prices. 
A)  Always-monopoly is per se illegal under the rule of reason. 
B)  Only when the monopoly created negative externalities. 
C)  Only when the monopoly engaged in illegal business practices. 
D)  Only when the monopoly charged excessively high prices.

Question 16

Which of the following is not one of the four anti-competitive activities outlined in the Clayton Act?

Accepted Answer

A)  Price discrimination. 
B)  Exclusive buyer/seller contracts. 
C)  Buying a competitor's voting stock. 
D)  Buying a competitor's plants and equipment. 
E)  Interlocking boards of directors. 
A)  Price discrimination. 
B)  Exclusive buyer/seller contracts. 
C)  Buying a competitor's voting stock. 
D)  Buying a competitor's plants and equipment. 
E)  Interlocking boards of directors.

Question 17

Marginal cost pricing is a system of pricing in which the price charged equals the marginal cost of:

Accepted Answer

A)  the first unit produced. 
B)  each unit produced. 
C)  the last unit produced. 
D)  the profit-maximization unit. 
A)  the first unit produced. 
B)  each unit produced. 
C)  the last unit produced. 
D)  the profit-maximization unit.

Question 18

Under the Clayton Act, horizontal mergers by stock acquisition were:

Accepted Answer

A)  not considered. 
B)  illegal if they could be show to lessen competition. 
C)  illegal under any circumstances. 
D)  legal if they could be shown to lessen competition. 
A)  not considered. 
B)  illegal if they could be show to lessen competition. 
C)  illegal under any circumstances. 
D)  legal if they could be shown to lessen competition.

Question 19

The Utah Pie case is an example of a violation of the Robinson-Patman Act.

Accepted Answer

A) True 
 B)False

Question 20

The Department of Justice has challenged the merger of two firms, and the case has ended up in the Supreme Court. The two firms argue that they will not use their monopoly power to raise prices or to cut output. Under what judicial standard would their merger be allowed, and under what judicial standard would their merger be disallowed?

Accepted Answer

The merger would be allowed under the ru

The Utah Pie case was brought under which of the following laws?

Firms that place their assets in the custody of a board of trustees is called a(n):

A merger between two firms that have a supplier-purchaser relationship is:

The Robinson-Patman Act amended and further refined which of the following laws?

Government regulators can achieve efficiency for a natural monopoly by setting a price ceiling equal to the intersection of the demand curve and the:

The Civil Aeronautics Board (CAB) was:

If two steel firms decide to merge, this merger would be classified as:

A manufacturer will sell its product only to retailers who agree to buy its brand. This is an example of:

Economic regulation occurs when:

Suppose a steel firm and a cookware company merge. This merger would be classified as:

The rule of reason was an antitrust law guideline that emphasized the importance of over .

In the 1945 Alcoa antitrust case, the Court found ALCOA:

Which antitrust act prohibits exclusive dealing, tying contracts, stock acquisitions, and interlocking directorates?

The Celler-Kefauver Act of 1950 amended the:

According to the rule of reason, when would the courts find a monopoly in violation of the Sherman Antitrust Act?

Which of the following is not one of the four anti-competitive activities outlined in the Clayton Act?

Marginal cost pricing is a system of pricing in which the price charged equals the marginal cost of:

Under the Clayton Act, horizontal mergers by stock acquisition were:

The Utah Pie case is an example of a violation of the Robinson-Patman Act.

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 Utah Pie case was brought under which of the following laws?

Firms that place their assets in the custody of a board of trustees is called a(n):

A merger between two firms that have a supplier-purchaser relationship is:

The Robinson-Patman Act amended and further refined which of the following laws?

Government regulators can achieve efficiency for a natural monopoly by setting a price ceiling equal to the intersection of the demand curve and the:

The Civil Aeronautics Board (CAB) was:

If two steel firms decide to merge, this merger would be classified as:

A manufacturer will sell its product only to retailers who agree to buy its brand. This is an example of:

Economic regulation occurs when:

Suppose a steel firm and a cookware company merge. This merger would be classified as:

The rule of reason was an antitrust law guideline that emphasized the importance of ____ over ____.

In the 1945 Alcoa antitrust case, the Court found ALCOA:

Which antitrust act prohibits exclusive dealing, tying contracts, stock acquisitions, and interlocking directorates?

The Celler-Kefauver Act of 1950 amended the:

According to the rule of reason, when would the courts find a monopoly in violation of the Sherman Antitrust Act?

Which of the following is not one of the four anti-competitive activities outlined in the Clayton Act?

Marginal cost pricing is a system of pricing in which the price charged equals the marginal cost of:

Under the Clayton Act, horizontal mergers by stock acquisition were:

The Utah Pie case is an example of a violation of the Robinson-Patman Act.

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 rule of reason was an antitrust law guideline that emphasized the importance of over .