Question 1

The Consumer Product Safety Commission (CPSC) was established in:

Accepted Answer

A)  1887. 
B)  1931. 
C)  1934. 
D)  1972. 
A)  1887. 
B)  1931. 
C)  1934. 
D)  1972.

Question 2

"Mere size is no offense" is an antitrust ruling based on the rule of reason.

Accepted Answer

A) True 
 B)False

Question 3

If a firm engages in a merger that substantially reduces competition, then it would be in violation of the:

Accepted Answer

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

Question 4

Which of the following is concerned primarily with price discrimination?

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.

Question 5

In the Alcoa case, the Supreme Court abandoned the per se rule and established the rule of reason.

Accepted Answer

A) True 
 B)False

Question 6

The Utah Pie case is an example of a violation of the Celler-Kefauver Act.

Accepted Answer

A) True 
 B)False

Question 7

Which two pieces of legislation were passed in 1914?

Accepted Answer

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

Question 8

The antitrust legislation that made it illegal for a firm to pay cash for a competitor's patents, plant, and equipment was the:

Accepted Answer

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

Question 9

The Celler-Kefauver Act deals primarily with which of the following issues?

Accepted Answer

A)  Price discrimination. 
B)  Exclusive dealing. 
C)  Mergers. 
D)  Deceptive advertising. 
E)  Boards of directors. 
A)  Price discrimination. 
B)  Exclusive dealing. 
C)  Mergers. 
D)  Deceptive advertising. 
E)  Boards of directors.

Question 10

Price discounts to selected buyers with the intent of driving out smaller competitors is:

Accepted Answer

A)  widespread in all industries. 
B)  common in the retailing industry only. 
C)  illegal under the Robinson-Patman Act. 
D)  allowed if the four-firm concentration ratio is less than 50 percent. 
E)  beneficial to consumers in the long run. 
A)  widespread in all industries. 
B)  common in the retailing industry only. 
C)  illegal under the Robinson-Patman Act. 
D)  allowed if the four-firm concentration ratio is less than 50 percent. 
E)  beneficial to consumers in the long run.

Question 11

The Celler-Kefauver Act of 1950: ​

Accepted Answer

A)  ​amended the Sherman Act to outlaw price fixing where the effect is to lessen competition. 
B)  ​created the Interstate Commerce Commission. 
C)  ​ prohibited conglomerate mergers where the effect is to lessen competition. 
D)  ​prohibited a firm from acquiring the assets of another firm where the effect is to lessen competition. 
A)  ​amended the Sherman Act to outlaw price fixing where the effect is to lessen competition. 
B)  ​created the Interstate Commerce Commission. 
C)  ​ prohibited conglomerate mergers where the effect is to lessen competition. 
D)  ​prohibited a firm from acquiring the assets of another firm where the effect is to lessen competition.

Question 12

Which of the following is an amendment that strengthened the Sherman Antitrust Act?

Accepted Answer

A)  Celler Kefauver Act. 
B)  Clayton Act. 
C)  Robinson-Patman Act. 
D)  Tyler Act. 
A)  Celler Kefauver Act. 
B)  Clayton Act. 
C)  Robinson-Patman Act. 
D)  Tyler Act.

Question 13

The Clayton Act of 1914:

Accepted Answer

A)  was too vaguely worded to reduce anticompetitive behavior significantly 
B)  prohibited conspiracies in restraint of trade 
C)  prohibited price discrimination that reduces competition and cannot be justified based on cost differences 
D)  created the Federal Trade Commission 
A)  was too vaguely worded to reduce anticompetitive behavior significantly 
B)  prohibited conspiracies in restraint of trade 
C)  prohibited price discrimination that reduces competition and cannot be justified based on cost differences 
D)  created the Federal Trade Commission

Question 14

The antitrust law that prohibits firms from combining or conspiring to restrain trade in interstate commerce is the:

Accepted Answer

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

Question 15

If a firm has a tying agreement with a distributor which substantially lessens competition, then it is likely to be in violation of the:

Accepted Answer

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

Question 16

Under a rule of reason approach, which of the following would be legal in the United States?

Accepted Answer

A)  The merger of two small companies in an unconcentrated market. 
B)  Price fixing between IBM and Compaq. 
C)  The merger between Ford and General Motors. 
D)  Kellogg's and General Mills collude to drive Quaker Oats out of the business. 
E)  Exxon Oil and Mobil Oil elect the same person to their boards of directors. 
A)  The merger of two small companies in an unconcentrated market. 
B)  Price fixing between IBM and Compaq. 
C)  The merger between Ford and General Motors. 
D)  Kellogg's and General Mills collude to drive Quaker Oats out of the business. 
E)  Exxon Oil and Mobil Oil elect the same person to their boards of directors.

Question 17

The first major piece of antitrust legislation was:

Accepted Answer

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

Question 18

The Robinson-Patman Act strengthened the merger provisions of the Clayton Act.

Accepted Answer

A) True 
 B)False

Question 19

Today, the Federal Trade Commission (FTC) is concerned with:

Accepted Answer

A)  enforcing consumer protection legislation. 
B)  prohibiting deceptive advertising. 
C)  preventing collusion. 
D)  all of these. 
A)  enforcing consumer protection legislation. 
B)  prohibiting deceptive advertising. 
C)  preventing collusion. 
D)  all of these.

Question 20

The Sherman Antitrust Act outlawed tying contracts.

Accepted Answer

A) True 
 B)False

The Consumer Product Safety Commission (CPSC) was established in:

"Mere size is no offense" is an antitrust ruling based on the rule of reason.

If a firm engages in a merger that substantially reduces competition, then it would be in violation of the:

Which of the following is concerned primarily with price discrimination?

In the Alcoa case, the Supreme Court abandoned the per se rule and established the rule of reason.

The Utah Pie case is an example of a violation of the Celler-Kefauver Act.

Which two pieces of legislation were passed in 1914?

The antitrust legislation that made it illegal for a firm to pay cash for a competitor's patents, plant, and equipment was the:

The Celler-Kefauver Act deals primarily with which of the following issues?

Price discounts to selected buyers with the intent of driving out smaller competitors is:

The Celler-Kefauver Act of 1950:

Which of the following is an amendment that strengthened the Sherman Antitrust Act?

The Clayton Act of 1914:

The antitrust law that prohibits firms from combining or conspiring to restrain trade in interstate commerce is the:

If a firm has a tying agreement with a distributor which substantially lessens competition, then it is likely to be in violation of the:

Under a rule of reason approach, which of the following would be legal in the United States?

The first major piece of antitrust legislation was:

The Robinson-Patman Act strengthened the merger provisions of the Clayton Act.

Today, the Federal Trade Commission (FTC) is concerned with:

The Sherman Antitrust Act outlawed tying contracts.

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 Consumer Product Safety Commission (CPSC) was established in:

"Mere size is no offense" is an antitrust ruling based on the rule of reason.

If a firm engages in a merger that substantially reduces competition, then it would be in violation of the:

Which of the following is concerned primarily with price discrimination?

In the Alcoa case, the Supreme Court abandoned the per se rule and established the rule of reason.

The Utah Pie case is an example of a violation of the Celler-Kefauver Act.

Which two pieces of legislation were passed in 1914?

The antitrust legislation that made it illegal for a firm to pay cash for a competitor's patents, plant, and equipment was the:

The Celler-Kefauver Act deals primarily with which of the following issues?

Price discounts to selected buyers with the intent of driving out smaller competitors is:

The Celler-Kefauver Act of 1950: ​

Which of the following is an amendment that strengthened the Sherman Antitrust Act?

The Clayton Act of 1914:

The antitrust law that prohibits firms from combining or conspiring to restrain trade in interstate commerce is the:

If a firm has a tying agreement with a distributor which substantially lessens competition, then it is likely to be in violation of the:

Under a rule of reason approach, which of the following would be legal in the United States?

The first major piece of antitrust legislation was:

The Robinson-Patman Act strengthened the merger provisions of the Clayton Act.

Today, the Federal Trade Commission (FTC) is concerned with:

The Sherman Antitrust Act outlawed tying contracts.

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 Celler-Kefauver Act of 1950: