Question 1

Fines cannot be imposed in civil cases except to compensate the government for actual damages when it is a purchaser of goods and services.

Accepted Answer

A) True 
 B)False

Question 2

Mergers ________.

Accepted Answer

A)   encourage competition in supply and distribution channels
B)   eliminate inefficient cross-subsidization
C)   yields cost inefficiencies that bring losses to customers
D)   remove effective managementE) A) and B)
F) A) and C)

Question 3

The Industrial Organization school of thought believes that government intervention in markets is intended to improve economic performance.

Accepted Answer

A) True 
 B)False

Question 4

Firms need to provide training and guidance to employees to deal with antitrust concerns.

Accepted Answer

A) True 
 B)False

Question 5

The courts do not decide which rule is applicable on a case-by-case basis but instead hold that certain practices are per se illegal and others are not.

Accepted Answer

A) True 
 B)False

Question 6

The ________ prohibits price discrimination not justified by cost differences in serving customers.

Accepted Answer

A)   Federal Trade Commission Act
B)   Clayton Act
C)   Robinson-Patman Act
D)   Sherman ActE) A) and D)
F) A) and C)

Question 7

The Chicago school of thought to reasoning about antitrust focuses on the ________.

Accepted Answer

A)   functioning of markets and the nature of competition
B)   conduct that may foreclose opportunities or diminish competition
C)   social and political objectives of industries
D)   implication of informational asymmetries among market participantsE) None of the above
F) B) and C)

Question 8

As a result of the agreement between the Department of Justice and the Federal Trade Commission, cases are allocated primarily by the nature of the complaint and secondarily by industry.

Accepted Answer

A) True 
 B)False  False

Question 9

A lens manufacturing firm convinces other manufactures in the industry to halt supplies to a distributor. Considering all things constant, the lens manufacturing firms are not liable to an antitrust suit.

Accepted Answer

A) True 
 B)False

Question 10

Exemptions are also provided under the antitrust laws.

Accepted Answer

A) True 
 B)False  True

Question 11

In addition to a cost difference defense, a firm can defend itself by arguing that the price discrimination was necessary to meet competition.

Accepted Answer

A) True 
 B)False

Question 12

Under antitrust laws, the burden of proof to show that the act committed is not unreasonable is on the defendant.

Accepted Answer

A) True 
 B)False

Question 13

The Clayton Act ________.

Accepted Answer

A)   pertains to unreasonable restraints of trade with a focus on joint conduct
B)   prohibits unfair methods of competition and unfair or deceptive acts
C)   focuses on unilateral conduct and proscribes attempts to monopolize
D)   addresses potentially anticompetitive actionsE) C) and D)
F) B) and D)

Question 14

Which of the following portrays horizontal price fixing arrangement subject to antitrust scrutiny?

Accepted Answer

A)   Three manufacturers with a large market share for printed circuit for cell phones agree to control the prices in the industry.
B)   A cell phone hardware manufacturer requires dealers to carry only its parts.
C)   A leading cell phone manufacturer requires retailers to sell at the price specified by the company.
D)   Two manufacturers of printed circuit for cell phones announce a merger that would create a monopoly in the industry.E) B) and C)
F) None of the above

Question 15

Which of the following violations is not per se illegal in antitrust laws?

Accepted Answer

A)   allocation of customers among competitors
B)   maximum price resale maintenance
C)   price fixing
D)   output restraintsE) All of the above
F) A) and B)

Question 16

Antitrust law includes only statutes and not the court decisions interpreting those statutes.

Accepted Answer

A) True 
 B)False

Question 17

Vertical practices subject to antitrust scrutiny involves ________.

Accepted Answer

A)   resale price maintenance
B)   predatory pricing
C)   monopolization
D)   allocation of customersE) None of the above
F) A) and B)

Question 18

A leading video game console manufacturer requires dealers to carry only its products. Considering all things constant, an antitrust suit may be filed against the manufacturer.

Accepted Answer

A) True 
 B)False

Question 19

________ was the first federal antitrust statute.

Accepted Answer

A)   Interstate Commerce Act of 1887
B)   Sherman Act
C)   Clayton Act of 1914
D)   Federal Trade Commission ActE) B) and C)
F) A) and D)

Question 20

Antitrust policies are not concerned with ________.

Accepted Answer

A)   conduct of market participants
B)   structure of markets
C)   protecting competition
D)   protecting competitorsE) None of the above
F) C) and D) D

Exam 9: Antitrust: Economics, Law, and Politics

Fines cannot be imposed in civil cases except to compensate the government for actual damages when it is a purchaser of goods and services.

Correct AnswerverifiedShow Answer

Mergers ________.

Correct AnswerverifiedShow Answer

The Industrial Organization school of thought believes that government intervention in markets is intended to improve economic performance.

Correct AnswerverifiedShow Answer

Firms need to provide training and guidance to employees to deal with antitrust concerns.

Correct AnswerverifiedShow Answer

The courts do not decide which rule is applicable on a case-by-case basis but instead hold that certain practices are per se illegal and others are not.

Correct AnswerverifiedShow Answer

The ________ prohibits price discrimination not justified by cost differences in serving customers.

Correct AnswerverifiedShow Answer

The Chicago school of thought to reasoning about antitrust focuses on the ________.

Correct AnswerverifiedShow Answer

As a result of the agreement between the Department of Justice and the Federal Trade Commission, cases are allocated primarily by the nature of the complaint and secondarily by industry.

Correct AnswerverifiedFalse

A lens manufacturing firm convinces other manufactures in the industry to halt supplies to a distributor. Considering all things constant, the lens manufacturing firms are not liable to an antitrust suit.

Correct AnswerverifiedShow Answer

Exemptions are also provided under the antitrust laws.

Correct AnswerverifiedTrue

In addition to a cost difference defense, a firm can defend itself by arguing that the price discrimination was necessary to meet competition.

Correct AnswerverifiedShow Answer

Under antitrust laws, the burden of proof to show that the act committed is not unreasonable is on the defendant.

Correct AnswerverifiedShow Answer

The Clayton Act ________.

Correct AnswerverifiedShow Answer

Which of the following portrays horizontal price fixing arrangement subject to antitrust scrutiny?

Correct AnswerverifiedShow Answer

Which of the following violations is not per se illegal in antitrust laws?

Correct AnswerverifiedShow Answer

Antitrust law includes only statutes and not the court decisions interpreting those statutes.

Correct AnswerverifiedShow Answer

Vertical practices subject to antitrust scrutiny involves ________.

Correct AnswerverifiedShow Answer

A leading video game console manufacturer requires dealers to carry only its products. Considering all things constant, an antitrust suit may be filed against the manufacturer.

Correct AnswerverifiedShow Answer

________ was the first federal antitrust statute.

Correct AnswerverifiedShow Answer

Antitrust policies are not concerned with ________.

Correct AnswerverifiedD

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True

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D