Question 1

According to the textbook, any effort by government to influence or control the choices of private firms and individuals is called:

Accepted Answer

A) unpatriotic behavior. 
B) encroachment. 
C) libertarianism. 
D) regulation. 
A) unpatriotic behavior. 
B) encroachment. 
C) libertarianism. 
D) regulation.

Question 2

Regulation of markets may involve the cost of fewer products being available.

Accepted Answer

A) True 
 B)False

Question 3

The public interest theory of regulation holds that regulators seek to find market solutions that are economically efficient.

Accepted Answer

A) True 
 B)False

Question 4

Regulatory agencies attempt to:

Accepted Answer

A) limit the degree of competition between firms. 
B) influence business decisions that affect consumer and worker safety. 
C) guide businesses into the most profitable channels. 
D) establish tariffs and quotas against foreign firms. 
A) limit the degree of competition between firms. 
B) influence business decisions that affect consumer and worker safety. 
C) guide businesses into the most profitable channels. 
D) establish tariffs and quotas against foreign firms.

Question 5

In 1914, Congress passed the Federal Trade Commission Act, which gave the FTC the power to prosecute firms using illegal business acts.

Accepted Answer

A) True 
 B)False

Question 6

A firm's acquisition of assets of a competitor which results in decreased competition is subject to prosecution under the Clayton Act.

Accepted Answer

A) True 
 B)False

Question 7

Price-fixing was outlawed by the Sherman Antitrust Act.

Accepted Answer

A) True 
 B)False

Question 8

Selling below cost by foreign firms is punishable under the _______ Act.

Accepted Answer

A) Clayton 
B) Sherman 
C) Omnibus Trade and Competitiveness 
D) Global Dependence and International Competitiveness Antidumping 
A) Clayton 
B) Sherman 
C) Omnibus Trade and Competitiveness 
D) Global Dependence and International Competitiveness Antidumping

Question 9

The rule of reason as it applied to antitrust enforcement was not used in the ALCOA Case.

Accepted Answer

A) True 
 B)False

Question 10

Regulatory efforts aimed at protecting consumers have not:

Accepted Answer

A) benefited them. 
B) increased costs of some goods and services. 
C) caused prices of some goods and services to increase. 
D) been universally denounced by economists, even if they stress the costs involved. 
A) benefited them. 
B) increased costs of some goods and services. 
C) caused prices of some goods and services to increase. 
D) been universally denounced by economists, even if they stress the costs involved.

Question 11

The International Monetary Fund was created in 1995 to supervise world trade.

Accepted Answer

A) True 
 B)False

Question 12

The attempt of regulatory agencies to find market solutions that are economically efficient is explained by:

Accepted Answer

A) theories of public finance. 
B) imperfectly competitive models. 
C) the public choice theory of regulation. 
D) the public interest theory of regulation. 
A) theories of public finance. 
B) imperfectly competitive models. 
C) the public choice theory of regulation. 
D) the public interest theory of regulation.

Question 13

In the decades after the Civil War, giant corporations began to dominate industries such as:

Accepted Answer

A) meat packing and oil. 
B) farming and fishing. 
C) textiles and farming. 
D) fishing and textiles. 
A) meat packing and oil. 
B) farming and fishing. 
C) textiles and farming. 
D) fishing and textiles.

Question 14

Increasing trade deficits in the 1980s and concerns about U.S.competitiveness led to ________ firms that cooperated in ________ .

Accepted Answer

A) increasing antitrust enforcement against; foreign markets 
B) relaxation of antitrust enforcement against; joint ventures 
C) decreased antitrust activity involving; increasing domestic price discrimination 
D) increased discouragement of; foreign ventures 
A) increasing antitrust enforcement against; foreign markets 
B) relaxation of antitrust enforcement against; joint ventures 
C) decreased antitrust activity involving; increasing domestic price discrimination 
D) increased discouragement of; foreign ventures

Question 15

If firms collude to raise prices, they will be in violation of the Sherman Antitrust Act.

Accepted Answer

A) True 
 B)False

Question 16

The ALCOA and Brown Shoe cases added certainty and strength to the antitrust movement.

Accepted Answer

A) True 
 B)False

Question 17

According to current Justice Department guidelines, any industry with a Herfindahl-Hirschman Index under _______ would be considered to be unconcentrated.

Accepted Answer

A) 1,000 
B) 4,000 
C) 8,000 
D) 10,000 
A) 1,000 
B) 4,000 
C) 8,000 
D) 10,000

Question 18

Economists generally agree that if the ______ of consumer protection ______ the ________, the regulations should be _______.

Accepted Answer

A) costs; exceed; benefits; continued 
B) benefits; exceed; costs; discontinued 
C) costs; are less than; benefits; continued. 
D) benefits; equal; costs; discontinued 
A) costs; exceed; benefits; continued 
B) benefits; exceed; costs; discontinued 
C) costs; are less than; benefits; continued. 
D) benefits; equal; costs; discontinued

Question 19

Market power in the United States was often gained in the latter part of the nineteenth century by:

Accepted Answer

A) forming trusts. 
B) the growth of competition. 
C) international arrangements with Russian and Japanese firms. 
D) opening up more industries to international trade. 
A) forming trusts. 
B) the growth of competition. 
C) international arrangements with Russian and Japanese firms. 
D) opening up more industries to international trade.

Question 20

When two or more firms combine or conspire to monopolize trade, they are most directly in violation of the:

Accepted Answer

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

Exam 16: Inflation and Unemployment

According to the textbook, any effort by government to influence or control the choices of private firms and individuals is called:

Regulation of markets may involve the cost of fewer products being available.

The public interest theory of regulation holds that regulators seek to find market solutions that are economically efficient.

Regulatory agencies attempt to:

In 1914, Congress passed the Federal Trade Commission Act, which gave the FTC the power to prosecute firms using illegal business acts.

A firm's acquisition of assets of a competitor which results in decreased competition is subject to prosecution under the Clayton Act.

Price-fixing was outlawed by the Sherman Antitrust Act.

Selling below cost by foreign firms is punishable under the _______ Act.

The rule of reason as it applied to antitrust enforcement was not used in the ALCOA Case.

Regulatory efforts aimed at protecting consumers have not:

The International Monetary Fund was created in 1995 to supervise world trade.

The attempt of regulatory agencies to find market solutions that are economically efficient is explained by:

In the decades after the Civil War, giant corporations began to dominate industries such as:

Increasing trade deficits in the 1980s and concerns about U.S.competitiveness led to ________ firms that cooperated in ________ .

If firms collude to raise prices, they will be in violation of the Sherman Antitrust Act.

The ALCOA and Brown Shoe cases added certainty and strength to the antitrust movement.

According to current Justice Department guidelines, any industry with a Herfindahl-Hirschman Index under _______ would be considered to be unconcentrated.

Economists generally agree that if the ______ of consumer protection ______ the ________, the regulations should be _______.

Market power in the United States was often gained in the latter part of the nineteenth century by:

When two or more firms combine or conspire to monopolize trade, they are most directly in violation of the:

Economics: the Study of Choice

Confronting Scarcity: Choices in Production

Demand and Supply

Applications of Demand and Supply

Macroeconomics: the Big Picture

Measuring Total Output and Income

Aggregate Demand and Aggregate Supply

Economic Growth

The Nature and Creation of Money

Monopoly

The World of Imperfect Competition

Wages and Employment in Perfect Competition

Interest Rates and the Markets for Capital and Natural Resources

Imperfectly Competitive Markets for Factors of Production

Public Finance and Public Choice

International Trade

The Economics of the Environment

Inequality, Poverty, and Discrimination

Macroeconomics: the Big Picture

Measuring Total Income and Output

Aggregate Demand and Aggregate Supply

Economic Growth

The Nature and Creation of Money

Financial Markets and the Economy

Monetary Policy and the Fed

Government and Fiscal Policy

Consumption and the Aggregate Expenditures Model

Investment and Economic Activity

Net Exports and International Finance

Macro Inflation and Unemployment

Macro a Brief History of Macroeconomic Thought and Policy

Economic Development

Socialist Economies in Transition

Filters

Increasing trade deficits in the 1980s and concerns about U.S.competitiveness led to firms that cooperated in .

Economists generally agree that if the of consumer protection the , the regulations should be ___.