Question 1

Antitrust policy refers to government:

Accepted Answer

A) attempts to prevent the acquisition of monopoly power. 
B) attempts to encourage the exercise of monopoly power. 
C) encouragement of collusion in the marketplace. 
D) attempts to limit private enterprise. 
A) attempts to prevent the acquisition of monopoly power. 
B) attempts to encourage the exercise of monopoly power. 
C) encouragement of collusion in the marketplace. 
D) attempts to limit private enterprise.

Question 2

Airline deregulation resulted in:

Accepted Answer

A) changes in safety regulations. 
B) an increase in airfares. 
C) mergers and consolidations. 
D) a reduction in air travel. 
A) changes in safety regulations. 
B) an increase in airfares. 
C) mergers and consolidations. 
D) a reduction in air travel.

Question 3

The first law designed to curb monopoly power in the United States was the Sherman Antitrust Act.

Accepted Answer

A) True 
 B)False

Question 4

The rule of reason refers to:

Accepted Answer

A) the notion that those accused of using monopoly power to restrain trade should be judged by their behavior. 
B) the fact that courts should consider the reasonableness of mergers in comparison to other profit-making schemes. 
C) the legal and economic basis for a fair return to a large business firm. 
D) the other side of excessive price discrimination. 
A) the notion that those accused of using monopoly power to restrain trade should be judged by their behavior. 
B) the fact that courts should consider the reasonableness of mergers in comparison to other profit-making schemes. 
C) the legal and economic basis for a fair return to a large business firm. 
D) the other side of excessive price discrimination.

Question 5

Critics of antitrust policies point out that a ________ firm may be able to ________ small firms from competing, but other _______ firms may enter the industry in pursuit of ________ .

Accepted Answer

A) small; prevent; large; smaller profits. 
B) large; prevent; equally large; economic profits 
C) large; discourage; small; extraordinary profits. 
D) small; interfere with; small; market share. 
A) small; prevent; large; smaller profits. 
B) large; prevent; equally large; economic profits 
C) large; discourage; small; extraordinary profits. 
D) small; interfere with; small; market share.

Question 6

U.S.antitrust policies of today allow certain joint ventures among horizontally competitive firms.

Accepted Answer

A) True 
 B)False

Question 7

ICPAC (International Competition Policy Advisory Committee)is to provide advice and information on:

Accepted Answer

A) transnational terrorism. 
B) international anticompetitive issues. 
C) intrastate mergers in the United States. 
D) the Winter Olympics. 
A) transnational terrorism. 
B) international anticompetitive issues. 
C) intrastate mergers in the United States. 
D) the Winter Olympics.

Question 8

Trends toward widespread market deregulation began in the late:

Accepted Answer

A) 1960s. 
B) 1970s. 
C) 1980s. 
D) 1990s. 
A) 1960s. 
B) 1970s. 
C) 1980s. 
D) 1990s.

Question 9

If your software company cooperated with other software firms to raise prices, then your company would be in violation of the:

Accepted Answer

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

Question 10

If the largest software company in the industry merges with the next two biggest software firms, such that competition is substantially reduced, it would be in violation of the:

Accepted Answer

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

Question 11

A successful application of the Sherman Antitrust Act was in _______ against _______.

Accepted Answer

A) 1880; the Ford Motor Company 
B) 1889; the American Tobacco Company 
C) 1911; Standard Oil 
D) B and C are true. 
A) 1880; the Ford Motor Company 
B) 1889; the American Tobacco Company 
C) 1911; Standard Oil 
D) B and C are true.

Question 12

In 1978, the government dramatically changed the regulations regarding airlines by:

Accepted Answer

A) increasing regulations to improve airline safety. 
B) regulating fare structures to improve pricing and performance. 
C) removing regulations that had prevented competition in the airline industry. 
D) outlawing frequent flyer programs. 
A) increasing regulations to improve airline safety. 
B) regulating fare structures to improve pricing and performance. 
C) removing regulations that had prevented competition in the airline industry. 
D) outlawing frequent flyer programs.

Exam 16: Inflation and Unemployment

Antitrust policy refers to government:

Airline deregulation resulted in:

The first law designed to curb monopoly power in the United States was the Sherman Antitrust Act.

The rule of reason refers to:

Critics of antitrust policies point out that a ________ firm may be able to ________ small firms from competing, but other _______ firms may enter the industry in pursuit of ________ .

U.S.antitrust policies of today allow certain joint ventures among horizontally competitive firms.

ICPAC (International Competition Policy Advisory Committee)is to provide advice and information on:

Trends toward widespread market deregulation began in the late:

If your software company cooperated with other software firms to raise prices, then your company would be in violation of the:

If the largest software company in the industry merges with the next two biggest software firms, such that competition is substantially reduced, it would be in violation of the:

A successful application of the Sherman Antitrust Act was in _______ against _______.

In 1978, the government dramatically changed the regulations regarding airlines by:

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

Critics of antitrust policies point out that a ____ firm may be able to small firms from competing, but other _ firms may enter the industry in pursuit of ______ .

A successful application of the Sherman Antitrust Act was in _ against _.