Topic 18 – Flashcards
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Social regulation differs from industrial regulation in that:
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social regulation applies to virtually all industries, while industrial regulation applies to a restricted number.
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The regulation of natural monopolies has been criticized because it creates a tendency for regulated firms to use too much labor and too little capital in the production process: T/F
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F
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The Consider This box "Of Catfish and Art (and Other Things in Common)" lists examples of recent antitrust cases involving:
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price fixing
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In 2001, Microsoft was found guilty of violating:
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Sections 1 and 2 of the Sherman Act.
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Defenders of social regulation point out that:
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critics who stress the high administrative and compliance costs of social regulation underestimate the social benefits that the regulations produce.
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In which of the following cases did the final court decision result in a breakup of the firm into competing businesses?
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Standard Oil case
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Which of the following gave the Federal Trade Commission responsibility to protect the public against false and misleading advertising?
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Wheeler-Lea Act of 1938
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The Consumer Product Safety Commission engages in social regulation, rather than industrial regulation: T/F
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T
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Restructuring of a major industry resulted from the:
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AT&T case
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Anticompetitive mergers are illegal under provisions of the Clayton Act (as amended): T/F
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T
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The Federal Trade Commission:
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is empowered to file antitrust suits.
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Tying agreements are contracts by which retailers agree to charge the prices that manufacturers set on branded goods: T/F
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F
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Tying agreements are contracts by which retailers agree to charge the prices that manufacturers set on branded goods.
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4,150
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Critics of the regulation of natural monopolies contend that:
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the industry may "capture" or control the regulatory commission.
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A merger between a maker of household detergents and a fast food chain would be an example of:
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a conglomerate merger.
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In 2001, a U.S. court of appeals tossed out an earlier U.S. district court order that Microsoft:
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be split into two competing firms.
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The legal cartel theory indicates that, in any industry where market demand and the long-run average total cost curve intersect close to the latter's minimum, government regulation is mandatory and desirable: T/F
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F
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Antitrust suits can only be originated by the Federal Trade Commission: T/F
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F
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Tying contracts are illegal under the:
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Clayton Act of 1914.
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Which of the following amended the Clayton Act's prohibition against mergers that substantially lessen competition?
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Celler-Kefauver Act of 1950
