Question :
111) The objective of government regulation and competition policy can : 1384269
111) The objective of government regulation and competition policy can be described as a means to
A) promote economic efficiency.
B) make at least one person better off at the expense of others.
C) reduce inequality in the economy.
D) increase fairness in economic activities.
E) make all industries perfectly competitive.
112) A major aim of Canadian competition policy is to
A) eliminate oligopolies and the allocative inefficiency that they entail.
B) prevent further concentration of industries where such concentration would lessen competition.
C) monitor the pricing practices of crown corporations.
D) protect Canadian companies from unfair foreign competition.
E) achieve a perfectly competitive market structure in all markets in the Canadian economy.
113) Prior to the 1986 amendments to the Canadian Competition Act, cases brought against mergers were almost always unsuccessful. The reason most often cited for this is
A) that merging firms were always successful in destroying the incriminating evidence.
B) that judges were influenced.
C) that mergers previously fell under criminal law, rather than civil law, making them particularly hard to prove.
D) that mergers previously fell under civil law, rather than criminal law, making them particularly hard to prove.
E) the lack of a director responsible for prosecution.
114) An allowable defence for a merger according to Canada’s Competition Bureau is that
A) merging firms find it easier to decide how they will share the market.
B) merging firms are more profitable because they no longer have to compete with one another.
C) the gains in efficiency resulting from the merger more than offset any reductions in competition.
D) merged and therefore bigger firms are better placed to compete globally.
E) larger firms are easier to regulate.
115) In Canada, a significant challenge for the Competition Bureau when reviewing a possible merger between firms in a concentrated industry is to
A) determine whether efficiency gains make the merger desirable.
B) determine whether monopoly no longer poses a threat to the Canadian economy.
C) impose effective entry barriers to the industry.
D) determine whether criminal charges are required due to unlawful collusion.
E) allow those mergers that lead to larger firms that are easier to regulate.
116) In Canada, the Competition Act specifies that in antitrust cases the “watchdog” is the
A) Senate.
B) Commissioner of the Competition Bureau.
C) Supreme Court of Canada.
D) minister responsible for Industry Canada.
E) prime minister.
117) The administrative agency established to enforce the provisions of the Competition Act is the
A) Competition Bureau.
B) Federal Free Trade Practices Commission.
C) Department of Consumer and Corporate Affairs.
D) Competition Tribunal Act.
E) Director of Investigations.
118) Canadian governments (federal, provincial and municipal) employ public ownership or regulation of industries in an effort to
A) ensure that the goal of profit maximization is being pursued because this ensures allocative efficiency.
B) produce a more equitable distribution of income between consumers and producers with monopoly power.
C) protect consumers from the high prices and restricted output associated with monopoly power.
D) promote productive efficiency in all industries.
E) transfer monopoly profits from private firm owners to the government.
119) Suppose there are only two firms (Firms A and B) in Canada that produce good X, and the two firms propose a merger to create a single firm (Firm AB). Is there any circumstance under which the authorities enforcing Canadian competition policy might approve of such a merger?
A) According to the Competition Act, as long as the revenues of the merged firm are less than $100 million per year.
B) According to the Competition Act, if the merged firm enhances the status of a Canadian cultural industry.
C) If the market is defined as being within Canada’s borders, and the merger allows Firm AB to exploit economies of scale.
D) If international trade in good X is such that Firm AB faces a fully competitive environment, both within and outside of Canada’s borders.
120) In Canada, alleged violations of the Competition Act are referred to the ________ for adjudication.
A) Commissioner of the Competition Bureau
B) Competition Tribunal
C) minister responsible for Industry Canada
D) RCMP
E) provincial Courts of Appeal
