 |
| 1 | |
Which of the following most closely aligns with the view that the mere possession of monopoly power is not in itself a violation of the Sherman Act? |
| | A) | Per se violation |
| | B) | Rule of reason |
| | C) | Structuralist view |
| | D) | Active antitrust perspective |
|
|
|
| 2 | |
Unlike a vertical merger, a horizontal merger: |
| | A) | will not increase industry concentration. |
| | B) | does not violate antitrust laws. |
| | C) | will increase the Herfindahl index. |
| | D) | is a per se violation of the Sherman Act. |
|
|
|
| 3 | |
The philosophical basis for the Sherman Act and the Clayton Act is that: |
| | A) | firms with monopoly power restrict output and raise prices. |
| | B) | perfect information is needed to foster competitive outcomes. |
| | C) | negative externalities lead to an overallocation of resources to some industries. |
| | D) | deregulation of industries will foster competition and lower prices. |
|
|
|
| 4 | |
Suppose a fast food chain were to merge with a firm that makes paper and plastic wrappings for the chain's entrees. This would be an example of a: |
| | A) | vertical merger. |
| | B) | conglomerate merger. |
| | C) | horizontal merger. |
| | D) | per se violation of antitrust law. |
|
|
|
| 5 | |
Antitrust authorities are unlikely to take action against conglomerate mergers because such mergers: |
| | A) | are protected by the Celler-Kefauver Act. |
| | B) | are unlikely to create monopoly power. |
| | C) | promote exports, a worthy social goal. |
| | D) | reduce unemployment, a worthy social goal. |
|
|
|
| 6 | |
The Clayton Act prohibited: |
| | A) | unfair and deceptive sales practices that reduce competition. |
| | B) | vertical mergers. |
| | C) | conglomerate mergers. |
| | D) | price discrimination. |
|
|
|
| 7 | |
Which of the following allows injured parties to collect triple damages from illegal monopolies? |
| | A) | Celler-Kefauver Act |
| | B) | Sherman Act |
| | C) | Wheeler-Lea Act |
| | D) | Clayton Act |
|
|
|
| 8 | |
The market shares of the only firms in a particular industry are 40%, 40%, and 30%. The Herfindahl index for this industry is: |
| | A) | 33.3. |
| | B) | 100. |
| | C) | 1000. |
| | D) | 4100. |
|
|
|
| 9 | |
Studies of the U.S. deregulation of the airline, trucking, and rail freight industries have revealed that: |
| | A) | prices have dropped by one third to one half, adjusted for inflation. |
| | B) | industry output has decreased, adjusted for population growth. |
| | C) | these industries have "remonopolized" as firms have either merged or gone out of business. |
| | D) | deregulation ultimately harms consumers. |
|
|
|
| 10 | |
Among other things, social regulation addresses: |
| | A) | pricing decisions by natural monopolies. |
| | B) | mergers that lead to industry concentration. |
| | C) | price discrimination. |
| | D) | product design. |
|
|
.