Question 1

A function of the Federal Trade Commission is to:

Accepted Answer

A)  investigate instances of faulty and misleading advertising. 
B)  establish railway rates for interstate railroads. 
C)  ban or recall unsafe consumer products. 
D)  prevent insider trading in securities markets. 
A)  investigate instances of faulty and misleading advertising. 
B)  establish railway rates for interstate railroads. 
C)  ban or recall unsafe consumer products. 
D)  prevent insider trading in securities markets.

Question 2

The Federal Trade Commission:

Accepted Answer

A)  is empowered to hold public hearings to investigate unfair practices. 
B)  prohibits interlocking directorates in interstate industries. 
C)  regulates airline fares. 
D)  regulates such transportation industries as railroads and trucking. 
A)  is empowered to hold public hearings to investigate unfair practices. 
B)  prohibits interlocking directorates in interstate industries. 
C)  regulates airline fares. 
D)  regulates such transportation industries as railroads and trucking.

Question 3

The Sherman Act:

Accepted Answer

A)  was declared unconstitutional in 1895. 
B)  provided for government regulation of the railroads. 
C)  declared monopoly and restraints of trade to be illegal. 
D)  exempted the railroad and communications industries from the antitrust laws. 
A)  was declared unconstitutional in 1895. 
B)  provided for government regulation of the railroads. 
C)  declared monopoly and restraints of trade to be illegal. 
D)  exempted the railroad and communications industries from the antitrust laws.

Question 4

Answer the question on the basis of the following table showing market shares of firms in hypothetical industries.Assume these are distinct industries with no buyer-seller relationships or competition among them. $\begin{array}{c}
&&\text { Market Share of Firms in Industry }
\end{array}$
$\begin{array}{c}
\begin{array}{lll}
\
Industry\
Alpha\
Beta\
Cappa\
Delta\
\end{array}
\begin{array}{lll}
\
1&2&3&4&5&6\
30&30&20&20&--&--\
80&10&5&3&1&1\
25&25&25&25&--&--\
20&20&20&20&10&10
\end{array}
\end{array}$ Refer to the table.A structuralist would most likely assert that there is a violation of antitrust law in which industry?

Accepted Answer

A)  Alpha. 
B)  Beta. 
C)  Cappa. 
D)  Delta. 
A)  Alpha. 
B)  Beta. 
C)  Cappa. 
D)  Delta.

Question 5

The Sherman Act was designed to:

Accepted Answer

A)  exempt commercial banks from the antitrust laws. 
B)  make interlocking directorates legal. 
C)  prohibit misleading and antisocial advertising. 
D)  make monopoly and acts that restrain trade illegal. 
A)  exempt commercial banks from the antitrust laws. 
B)  make interlocking directorates legal. 
C)  prohibit misleading and antisocial advertising. 
D)  make monopoly and acts that restrain trade illegal.

Question 6

Which of the following is correct?

Accepted Answer

A)  Vertical mergers are more likely to be acceptable under antitrust laws than are horizontal mergers. 
B)  A vertical merger entails the merging of two or more competing firms. 
C)  Horizontal mergers are more likely to be acceptable under antitrust laws than are vertical mergers. 
D)  Conglomerate mergers occur when two or more firms at various stages in a good's production are combined. 
A)  Vertical mergers are more likely to be acceptable under antitrust laws than are horizontal mergers. 
B)  A vertical merger entails the merging of two or more competing firms. 
C)  Horizontal mergers are more likely to be acceptable under antitrust laws than are vertical mergers. 
D)  Conglomerate mergers occur when two or more firms at various stages in a good's production are combined.

Question 7

In which of the following cases did the final court decision result in a breakup of the firm into competing businesses?

Accepted Answer

A)  Microsoft case. 
B)  Standard Oil case. 
C)  U.S.Steel case. 
D)  DuPont cellophane case. 
A)  Microsoft case. 
B)  Standard Oil case. 
C)  U.S.Steel case. 
D)  DuPont cellophane case.

Question 8

Which one of the following is most likely to increase the Herfindahl index of a particular industry?

Accepted Answer

A)  A conglomerate merger. 
B)  A vertical merger. 
C)  A price-fixing arrangement among all the industry firms. 
D)  A horizontal merger. 
A)  A conglomerate merger. 
B)  A vertical merger. 
C)  A price-fixing arrangement among all the industry firms. 
D)  A horizontal merger.

Question 9

Restructuring of a major industry resulted from the:

Accepted Answer

A)  U.S.Steel case. 
B)  AT&T case. 
C)  IBM case. 
D)  DuPont cellophane case. 
A)  U.S.Steel case. 
B)  AT&T case. 
C)  IBM case. 
D)  DuPont cellophane case.

Question 10

In which of the following cases was the firm found not guilty of violating the Sherman Act?

Accepted Answer

A)  Standard Oil case. 
B)  Microsoft case. 
C)  Alcoa case. 
D)  DuPont cellophane case. 
A)  Standard Oil case. 
B)  Microsoft case. 
C)  Alcoa case. 
D)  DuPont cellophane case.

Question 11

(Last Word)The final settlement of the United States v.Microsoft case,in part:

Accepted Answer

A)  requires that Microsoft provide technical information to competing companies so they can develop software programs that work as well with Windows as Microsoft's own products. 
B)  broke up Microsoft into two competing firms. 
C)  found Microsoft not guilty of violating the Sherman Act. 
D)  forced Microsoft to sell off its major applications programs such as Word and PowerPoint. 
A)  requires that Microsoft provide technical information to competing companies so they can develop software programs that work as well with Windows as Microsoft's own products. 
B)  broke up Microsoft into two competing firms. 
C)  found Microsoft not guilty of violating the Sherman Act. 
D)  forced Microsoft to sell off its major applications programs such as Word and PowerPoint.

Question 12

Tying contracts are illegal under the:

Accepted Answer

A)  Wagner Act of 1935. 
B)  Clayton Act of 1914. 
C)  FTC Act of 1914. 
D)  Celler-Kefauver Act of 1950. 
A)  Wagner Act of 1935. 
B)  Clayton Act of 1914. 
C)  FTC Act of 1914. 
D)  Celler-Kefauver Act of 1950.

Question 13

Which one of the following is concerned with social regulation?

Accepted Answer

A)  Equal Employment Opportunity Commission 
B)  Federal Communications Commission 
C)  Sherman Commission 
D)  Federal Energy Regulatory Commission 
A)  Equal Employment Opportunity Commission 
B)  Federal Communications Commission 
C)  Sherman Commission 
D)  Federal Energy Regulatory Commission

A function of the Federal Trade Commission is to:

The Federal Trade Commission:

The Sherman Act:

The Sherman Act was designed to:

Which of the following is correct?

In which of the following cases did the final court decision result in a breakup of the firm into competing businesses?

Which one of the following is most likely to increase the Herfindahl index of a particular industry?

Restructuring of a major industry resulted from the:

In which of the following cases was the firm found not guilty of violating the Sherman Act?

(Last Word)The final settlement of the United States v.Microsoft case,in part:

Tying contracts are illegal under the:

Which one of the following is concerned with social regulation?

Limits, Alternatives, and Choices

The Market System and the Circular Flow

Demand, Supply, and Market Equilibrium

Market Failures: Public Goods and Externalities

Governments Role and Government Failure

Elasticity

Utility Maximization

Behavioral Economics

Businesses and the Cost of Production

Pure Competition in the Short Run

Pure Competition in the Long Run

Pure Monopoly

Monopolistic Competition and Oligopoly

Technology RD and Efficiency

The Demand for Resources

Wage Determination

Rent Interest and Profit

Natural Resource and Energy Economics

Public Finance: Expenditures and Taxes

Agriculture: Economics and Policy

Filters

Exam 20: Antitrust Policy and Regulation

A function of the Federal Trade Commission is to:

The Federal Trade Commission:

The Sherman Act:

The Sherman Act was designed to:

Which of the following is correct?

In which of the following cases did the final court decision result in a breakup of the firm into competing businesses?

Which one of the following is most likely to increase the Herfindahl index of a particular industry?

Restructuring of a major industry resulted from the:

In which of the following cases was the firm found not guilty of violating the Sherman Act?

(Last Word)The final settlement of the United States v.Microsoft case,in part:

Tying contracts are illegal under the:

Which one of the following is concerned with social regulation?

Limits, Alternatives, and Choices

The Market System and the Circular Flow

Demand, Supply, and Market Equilibrium

Market Failures: Public Goods and Externalities

Governments Role and Government Failure

Elasticity

Utility Maximization

Behavioral Economics

Businesses and the Cost of Production

Pure Competition in the Short Run

Pure Competition in the Long Run

Pure Monopoly

Monopolistic Competition and Oligopoly

Technology RD and Efficiency

The Demand for Resources

Wage Determination

Rent Interest and Profit

Natural Resource and Energy Economics

Public Finance: Expenditures and Taxes

Agriculture: Economics and Policy

Filters