Exam 47: Antitrust and Regulation

Which of the following is true of Antitrust policy?

One difference between economic and social regulation is that economic regulation usually pertains to a specific industry, whereas social regulation applies most if not all industries.

The recession beginning in 2007 led many governments to begin encouraging trade.

A monopolistic industry will have a Herfindahl index value of:

Antitrust policy is used to describe government policies and programs that are designed to:

Restrictions on the types of food additives that breakfast cereal manufacturers can use is an example of a social regulation.

When regulators require that a natural monopoly sets price equal to average total cost:

Actions against alleged violators of the antitrust statutes may be initiated by the Justice Department, by the Federal Trade Commission, and by private plaintiffs.

Any kind of social regulation raises the per unit cost of production of a good and hence leads to a loss of producer and consumer surplus.

According to the Index of Economic Freedom, which of the following is the freest economy in the world?

For the world as a whole, economic freedom increased since 1994 as the countries opened up in the world market and the governments slashed tax rates.

One reason that governments may intervene in the operation of a business through regulation is to:

The "buy American" restriction introduced in the U.S.in 2009 required:

Which of the following entities is able to sue a firm for alleged antitrust misbehavior in the U.S.?

The figure below shows revenue and cost curves of a natural monopoly firm. Figure 26.1 In the figure, D: Demand curve MR: Marginal revenue curve MC: Marginal cost curve ATC: Average total cost curve Refer to Figure 26.1.The natural monopolist will charge a price equal to:

The figure below shows revenue and cost curves of a natural monopoly firm. Figure 26.1 In the figure, D: Demand curve MR: Marginal revenue curve MC: Marginal cost curve ATC: Average total cost curve According to Figure 26.1, the price under perfect competition will be:

Cities and local governments in the United States have contracted out many services in the recent years.It implies that:

Sherman Antitrust Act bans price discrimination that substantially lessens competition or injures particular competitors.

Which of the following practices is restricted by the antitrust laws of the United States?

According to the per se rule, activities that were potentially monopolizing tactics were illegal.