If a foreign firm dumps or sells goods below cost, it can be more easily prosecu

Question

If a foreign firm dumps or sells goods below cost, it can be more easily prosecuted through the:
Question 1 options:
Clayton Act.
Sherman Antitrust Act.
Celler-Kefauver Act.
Omnibus Trade and Competitiveness Act

Question 2
Megamergers were common at the end of the nineteenth century but not at the end of the twentieth century.
Question 2 options:
True
False


Question 3
The marginal decision rule as applied to regulation states that regulations:
Question 3 options:
should be undertaken when their marginal benefits exceed their marginal costs.
should be undertaken when their marginal benefits are less than their marginal costs.
that improve safety should be undertaken, whatever the costs.
should be designed to minimize the net benefit.

Question 4
Increasing trade deficits in the 1980s and concerns about U.S. competitiveness led to ________ firms that cooperated in ________ .
Question 4 options:
increasing antitrust enforcement against; foreign markets
relaxation of antitrust enforcement against; joint ventures
decreased antitrust activity involving; increasing domestic price discrimination
increased discouragement of; foreign ventures

Question 5
According to the textbook, any effort by government to influence or control the choices of private firms and individuals is called:
Question 5 options:
unpatriotic behavior.
encroachment.
libertarianism.
regulation.

Question 6
Airline deregulation is generally held to have resulted in:
Question 6 options:
fewer frequent flyer programs.
lower fares.
a decrease in safety.
a reduction in passenger miles flown.

Question 7
The idea that government regulations often end up by serving the regulated firms is called:
Question 7 options:
public choice theory.
public interest theory.
the capture theory of regulation.
the rational ignorance theory of regulation.

Question 8
A firm that does not change the price at which it sells its output is said to be engaged in price fixing.
Question 8 options:
True
False

Question 9
Selling below cost by foreign firms is called:
Question 9 options:
dumping.
undercutting.
unfair competition and is punishable under the Clayton Act.
unpatriotic.

Question 10
According to the text, the entrepreneurs who led the businesses that began to dominate various industries in the late nineteenth century were called
Question 10 options:
robber barons.
moguls.
the trust giants
the young monopolists.

Question 11
In the late 1980s, antitrust enforcement was altered so that _______ competitive U.S. firms could cooperate in _______ in research and development.
Question 11 options:
vertically; foreign markets
horizontally; joint ventures
vertically; joint ventures
horizontally; international cartels

Question 12
Firms in Japan and Europe are subject to _______ antitrust restrictions than (as) U.S. firms.
Question 12 options:
the same
more
less
more international

Question 13
Although the Justice Department once relied on the Herfindahl-Hirschman Index to evaluate mergers, it no longer does so.
Question 13 options:
True
False

Question 14
A merger that combines two or more producers of the same good or service is called a ________ merger.
Question 14 options:
vertical
horizontal
slanting
sideways

Question 15
If a firm engages in a vertical merger that substantially reduces competition, then it is likely to be in violation of the:
Question 15 options:
Clayton Act.
Celler-Kefauver Act.
Sherman Antitrust Act.
Federal Trade Commission Act.

Question 16
An action that violates the law, with no consideration given to the circumstances surrounding the action, is called:
Question 16 options:
immoral.
illegal per se.
primitive.
collusive.

Question 17
The consolidation of firms that compete in the same industry or product line is a(n):
Question 17 options:
vertical merger.
conglomerate merger.
monopoly merger.
horizontal merger.

Question 18
Critics of antitrust laws and enforcement activity argue that:
Question 18 options:
among the 500 largest companies in the United States in 1950, almost none have been displaced in the last 50 years.
the emergence of new firms suggests dynamism and the competitive nature of the economy.
it is necessary that an industry be perfectly competitive to achieve the benefits of competition.
there is not enough enforcement, and more effort should go into it.

Question 19
Justice Department guidelines stipulate that proposed mergers that result in a postmerger HHI between 1,000 and 1,800 will be challenged if they increase the HHI by more than _______ points.
Question 19 options:
100
75
50
25

Question 20
Regulation of markets and enforcement of consumer safety laws may involve the cost of:
Question 20 options:
economic instability.
fewer products being available.
the use of fewer resources in government.
all of the above.

Explanation / Answer

1)clayton act
2)true
3)should be designed to minimize the net benefit.
4)decreased antitrust activity involving; increasing domestic price discrimination
5)libertarianism.
6)lower fares.
7)public choice theory.
8)true
9)undercutting.
10)the young monopolists.
11)vertically; joint ventures
12)more
13)true
14)vertical
15)Celler-Kefauver Act.
16)primitive
17)conglomerate merger.
18)there is not enough enforcement, and more effort should go into it.
19)50
20)all of the above.

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