Topic 18 Essay

question

Social regulation differs from industrial regulation in that:
answer

social regulation applies to virtually all industries, while industrial regulation applies to a restricted number.
question

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
answer

F
question

The Consider This box “Of Catfish and Art (and Other Things in Common)” lists examples of recent antitrust cases involving:
answer

price fixing
question

In 2001, Microsoft was found guilty of violating:
answer

Sections 1 and 2 of the Sherman Act.
question

Defenders of social regulation point out that:
answer

critics who stress the high administrative and compliance costs of social regulation underestimate the social benefits that the regulations produce.
question

In which of the following cases did the final court decision result in a breakup of the firm into competing businesses?
answer

Standard Oil case
question

Which of the following gave the Federal Trade Commission responsibility to protect the public against false and misleading advertising?
answer

Wheeler-Lea Act of 1938
question

The Consumer Product Safety Commission engages in social regulation, rather than industrial regulation: T/F
answer

T
question

Restructuring of a major industry resulted from the:
answer

AT&T case
question

Anticompetitive mergers are illegal under provisions of the Clayton Act (as amended): T/F
answer

T
question

The Federal Trade Commission:
answer

is empowered to file antitrust suits.
question

Tying agreements are contracts by which retailers agree to charge the prices that manufacturers set on branded goods: T/F
answer

F
question

Tying agreements are contracts by which retailers agree to charge the prices that manufacturers set on branded goods.
answer

4,150
question

Critics of the regulation of natural monopolies contend that:
answer

the industry may “capture” or control the regulatory commission.
question

A merger between a maker of household detergents and a fast food chain would be an example of:
answer

a conglomerate merger.
question

In 2001, a U.S. court of appeals tossed out an earlier U.S. district court order that Microsoft:
answer

be split into two competing firms.
question

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
answer

F
question

Antitrust suits can only be originated by the Federal Trade Commission: T/F
answer

F
question

Tying contracts are illegal under the:
answer

Clayton Act of 1914.
question

Which of the following amended the Clayton Act’s prohibition against mergers that substantially lessen competition?
answer

Celler-Kefauver Act of 1950

Get instant access to
all materials

Become a Member