Question 1

According to U.S.antitrust enforcement guidelines,a merger is likely to be challenged if

Accepted Answer

A) the HHI decreases after the merger. 
B) the industry after the merger has an HHI above 1,800 and the HHI rises by more than 50. 
C) the industry after the merger has an HHI above 1,800 and the HHI falls by more than 100. 
D) the industry after the merger has an HHI above 1,000 and the HHI rises by more than 10. 
A) the HHI decreases after the merger. 
B) the industry after the merger has an HHI above 1,800 and the HHI rises by more than 50. 
C) the industry after the merger has an HHI above 1,800 and the HHI falls by more than 100. 
D) the industry after the merger has an HHI above 1,000 and the HHI rises by more than 10.

Question 2

The hypothesis that regulators eventually are controlled by the regulated firms and their special interests is the

Accepted Answer

A) share-the-gains,share-the-pains hypothesis. 
B) capture hypothesis. 
C) public interest theory. 
D) control-group hypothesis. 
A) share-the-gains,share-the-pains hypothesis. 
B) capture hypothesis. 
C) public interest theory. 
D) control-group hypothesis.

Question 3

-In the above figure,if this natural monopolist were forced to use marginal cost pricing,it would produce

Accepted Answer

A) at Q1 output rate. 
B) at Q2 output rate. 
C) at Q3 output rate. 
D) past the Q3 output rate. 
A) at Q1 output rate. 
B) at Q2 output rate. 
C) at Q3 output rate. 
D) past the Q3 output rate.

Question 4

Economists who think the capture theory explains regulatory behavior will support their claims by noting that

Accepted Answer

A) regulation as carried out in this country generates larger profits for the firms and does not generate lower prices for consumers. 
B) consumers actually dominate regulatory hearings through the influence of consumer advocacy groups. 
C) Congress ensured that consumers have more influence on the decisions of regulators by setting up the agencies in ways that insulated the regulators from the regulated firms. 
D) the firms that are regulated have greater incentive to try to influence regulators than do consumers. 
A) regulation as carried out in this country generates larger profits for the firms and does not generate lower prices for consumers. 
B) consumers actually dominate regulatory hearings through the influence of consumer advocacy groups. 
C) Congress ensured that consumers have more influence on the decisions of regulators by setting up the agencies in ways that insulated the regulators from the regulated firms. 
D) the firms that are regulated have greater incentive to try to influence regulators than do consumers.

Question 5

The lemons problem is a situation of

Accepted Answer

A) perfect competition. 
B) asymmetric information. 
C) creative response. 
D) a natural monopoly. 
A) perfect competition. 
B) asymmetric information. 
C) creative response. 
D) a natural monopoly.

Question 6

The benefits of social regulation are

Accepted Answer

A) easy to measure by the marginal value method. 
B) often difficult to measure. 
C) obvious to almost everyone,but the costs are usually hidden. 
D) greater than the costs of social regulation in every example in the country today. 
A) easy to measure by the marginal value method. 
B) often difficult to measure. 
C) obvious to almost everyone,but the costs are usually hidden. 
D) greater than the costs of social regulation in every example in the country today.

Question 7

Which of the following federal agencies is NOT engaged in social regulation?

Accepted Answer

A) Environmental Protection Agency 
B) Federal Trade Commission 
C) Food and Drug Administration 
D) Federal Deposit Insurance Corporation 
A) Environmental Protection Agency 
B) Federal Trade Commission 
C) Food and Drug Administration 
D) Federal Deposit Insurance Corporation

Question 8

The Federal Trade Commission Act was designed to

Accepted Answer

A) prohibit bundling. 
B) increase foreign trade. 
C) prohibit cutthroat pricing. 
D) limit company profits from foreign sales. 
A) prohibit bundling. 
B) increase foreign trade. 
C) prohibit cutthroat pricing. 
D) limit company profits from foreign sales.

Question 9

The theory of regulatory behavior that predicts that the "regulators" eventually will become controlled by the "regulated" is called

Accepted Answer

A) the capture hypothesis. 
B) the the share-the-gains,share-the-pains hypothesis. 
C) the asymmetric information hypothesis. 
D) the market failure hypothesis. 
A) the capture hypothesis. 
B) the the share-the-gains,share-the-pains hypothesis. 
C) the asymmetric information hypothesis. 
D) the market failure hypothesis.

According to U.S.antitrust enforcement guidelines,a merger is likely to be challenged if

The hypothesis that regulators eventually are controlled by the regulated firms and their special interests is the

-In the above figure,if this natural monopolist were forced to use marginal cost pricing,it would produce

Economists who think the capture theory explains regulatory behavior will support their claims by noting that

The lemons problem is a situation of

The benefits of social regulation are

Which of the following federal agencies is NOT engaged in social regulation?

The Federal Trade Commission Act was designed to

The theory of regulatory behavior that predicts that the "regulators" eventually will become controlled by the "regulated" is called

The Nature of Economics

Scarcity and the World of Trade-Offs

Demand and Supply

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

Demand and Supply Elasticity

Consumer Choice

Rents, profits, and the Financial Environment of Business

The Firm: Cost and Output Determination

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

The Labor Market: Demand, supply and Outsourcing

Unions and Labor Market Monopoly Power

Income, poverty, and Health Care

Environmental Economics

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

Filters

Exam 14: Regulation and Antitrust Policy in a Globalized Economy

According to U.S.antitrust enforcement guidelines,a merger is likely to be challenged if

The hypothesis that regulators eventually are controlled by the regulated firms and their special interests is the

-In the above figure,if this natural monopolist were forced to use marginal cost pricing,it would produce

Economists who think the capture theory explains regulatory behavior will support their claims by noting that

The lemons problem is a situation of

The benefits of social regulation are

Which of the following federal agencies is NOT engaged in social regulation?

The Federal Trade Commission Act was designed to

The theory of regulatory behavior that predicts that the "regulators" eventually will become controlled by the "regulated" is called

The Nature of Economics

Scarcity and the World of Trade-Offs

Demand and Supply

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

Demand and Supply Elasticity

Consumer Choice

Rents, profits, and the Financial Environment of Business

The Firm: Cost and Output Determination

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

The Labor Market: Demand, supply and Outsourcing

Unions and Labor Market Monopoly Power

Income, poverty, and Health Care

Environmental Economics

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

Filters