(1) Antitrust laws in the United States: A) have not been used in the past twent
ID: 2439321 • Letter: #
Question
(1) Antitrust laws in the United States:
A) have not been used in the past twenty-five years. B) are the same as the laws in the European Union. C) are not necessary in the twenty-first century. D) are an attempt to foster competition.
(2) The primary antitrust statute in the United States is the:
A) SEC Act of 1933. B) Federal Reserve Act of 1913. C) NLRA of 1935. D) Sherman Antitrust Act of 1890.
(3) Which of the following is FALSE with respect to regulation?:
A) Regulation has resulted in state laws that have made creative response illegal in many states. B) Recent regulations have generated feedback effects that undermined the key aim of the rules. C) Firms engage in creative responses which conform to the letter of the law but undermine its spirit. D) Regulated firms commonly try to avoid the effects of regulation whenever they can.
(4) One of the elements of monopolization is:
A) when only one firm exists in an industry. B) the possession of monopoly power in the relevant market. C) having a significant pricing power due to an accident in the relevant market. D) having a superior product or having a superior business acumen..
(5) The Supreme Court's decision in the Standard Oil of New Jersey case was:
A) to increase the fine imposed by a lower court. B) to force the company to send refund checks to customers. C) to break up the company. D) to force the company to pay $10 billion in fines.
(6)The Interstate Commerce Commission (ICC) regulates railroads, barges and trucks. Suppose technical change lowers the costs of railroads. As a result, the ICC permits railroads to lower prices some but also alters the rates of barges and trucks so they get additional business. The ICC would be acting consistently with:
A) the share-the-gains, share-the-pains theory of regulation. B) the capture theory of regulation. C) None of the theories presented in the text since economic regulation is specific to a single industry and not to agencies that cover more than one industry. That is the province of social regulation. D) the public interest theory of regulation.
Explanation / Answer
1. Antitrust laws in the United States are an attempt to foster competition. So the correct option is D.
2. The primary antitrust statute in the United States is the Sherman Antitrust Act of 1890. So the correct option is D.
3. Regulated firms commonly try to avoid the effects of regulation whenever they can is FALSE with respect to regulation, So the correct option is D.
4. One of the elements of monopolization is the possession of monopoly power in the relevant market. So the correct option is B.
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