Question 1

Regulation is an effort by government agencies to control the choices of private firms or individuals.

Accepted Answer

A) True 
 B)False

Question 2

The bigness-is-badness doctrine dominated U.S.antitrust policy from 1945 to the 1970s, but it had many critics.

Accepted Answer

A) True 
 B)False

Question 3

Justice Department guidelines indicate that they will challenge mergers in highly concentrated industries if the postmerger index changes by more than _____points, with presumption of enhanced market power if the change is more than _____points.

Accepted Answer

A)   50; 100
B)   50; 2500
C)   100; 200
D)   1,000; 2,500E) A) and D)
F) A) and C)

Question 4

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.E) B) and D)
F) All of the above

Question 5

An action that violates the law, with no consideration given to the circumstances surrounding the action, is called:

Accepted Answer

A)   immoral.
B)   illegal per se.
C)   primitive.
D)   collusive.E) B) and C)
F) A) and D)

Question 6

The public choice theory of regulation rests on the premise that:

Accepted Answer

A)   individuals are evil and will only do the wrong thing.
B)   individuals will pursue their own self-interest in private, but not public matters.
C)   people employed by government will pursue their own self-interest.
D)   public servants can be trusted to serve the public interest.E) C) and D)
F) All of the above

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

The rule of reason refers to:

Accepted Answer

A)   unreasonable forms of price discrimination.
B)   the current need for more reasonable antitrust enforcement.
C)   the reasonableness of conglomerate mergers as opposed to other types of mergers.
D)   the idea that monopolies should be judged by their behavior.E) C) and D)
F) B) and D)

Question 10

The Justice Department guidelines are that any industry with an HHI Index under 1,000 would be considered to be unconcentrated.

Accepted Answer

A) True 
 B)False

Question 11

One cost of consumer protection laws is that they may have encouraged more reckless behaviors.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A)   Sherman Antitrust
B)   Clayton
C)   Federal Trade Commission
D)   Robinson-PatmanE) A) and B)
F) None of the above

Question 13

If a firm acquires stock and assets of a competitor and the result is a decrease in competition, it may very well be in violation of the:

Accepted Answer

A)   Sherman Antitrust Act.
B)   FTC Act.
C)   Robinson-Patman Act.
D)   Clayton Act.E) None of the above
F) B) and C)

Question 14

The capture theory of regulation indicates that a regulatory agency:

Accepted Answer

A)   often serves the regulated firms rather than their customers.
B)   encourages other regulatory agencies to deregulate their industries.
C)   seeks to find market solutions that are economically efficient.
D)   extends its regulatory powers over industries it was not intended to regulate.E) B) and D)
F) A) and B)

Question 15

What are the major considerations in the economic arguments against concentration of industry?

Accepted Answer

The major considerations in the economic...

Question 16

Price-fixing is outlawed by the:

Accepted Answer

A)   Sherman Antitrust Act.
B)   Clayton Act.
C)   Federal Trade Commission Act.
D)   Celler-Kefauver Act.E) None of the above
F) A) and B)

Question 17

The final third of the nineteenth century saw a huge increase in the number of firms in most industries and a dramatic increase in competition.

Accepted Answer

A) True 
 B)False

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; discontinuedE) B) and C)
F) None of the above

Question 19

If a foreign firm dumps or sells goods below cost, it can be more easily prosecuted through the:

Accepted Answer

A)   Clayton Act.
B)   Sherman Antitrust Act.
C)   Celler-Kefauver Act.
D)   Omnibus Trade and Competitiveness Act.E) A) and D)
F) A) and C)

Question 20

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.E) A) and B)
F) B) and C)

Exam 16: Antitrust Policy and Business Regulation

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

Correct AnswerverifiedShow Answer

The bigness-is-badness doctrine dominated U.S.antitrust policy from 1945 to the 1970s, but it had many critics.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What are the major considerations in the economic arguments against concentration of industry?

Correct AnswerAnswered by ExamLex AIThe major considerations in the economic...View AnswerShow Answer

If a foreign firm dumps or sells goods below cost, it can be more easily prosecuted through the:

Correct AnswerverifiedShow Answer

One cost of consumer protection laws is that they may have encouraged more reckless behaviors.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The rule of reason refers to:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Price-fixing is outlawed by the:

Correct AnswerverifiedShow Answer

The capture theory of regulation indicates that a regulatory agency:

Correct AnswerverifiedShow Answer

The public choice theory of regulation rests on the premise that:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

An action that violates the law, with no consideration given to the circumstances surrounding the action, is called:

Correct AnswerverifiedShow Answer

Regulation is an effort by government agencies to control the choices of private firms or individuals.

Correct AnswerverifiedShow Answer

Justice Department guidelines indicate that they will challenge mergers in highly concentrated industries if the postmerger index changes by more than _____points, with presumption of enhanced market power if the change is more than _____points.

Correct AnswerverifiedShow Answer

The Justice Department guidelines are that any industry with an HHI Index under 1,000 would be considered to be unconcentrated.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The final third of the nineteenth century saw a huge increase in the number of firms in most industries and a dramatic increase in competition.

Correct AnswerverifiedShow Answer

If a firm acquires stock and assets of a competitor and the result is a decrease in competition, it may very well be in violation of the:

Correct AnswerverifiedShow Answer

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The major considerations in the economic...
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Justice Department guidelines indicate that they will challenge mergers in highly concentrated industries if the postmerger index changes by more than _points, with presumption of enhanced market power if the change is more than _points.

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

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Correct Answer
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Correct Answer
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