Question : 18.4   Antitrust Law 1) The focus of antitrust legislation to A) encourage : 1241317

 

18.4   Antitrust Law

 

1) The focus of antitrust legislation is to

A) encourage cartels to form because they are easier to regulate.

B) maintain competition.

C) force society to act in the best interest of producers.

D) limit the power of regulatory bodies.

E) ensure that producers earn enough profit to stay in business so that consumers are not harmed by too many businesses closing.

2) Which of the following are U.S. antitrust laws?

i.The Rockefeller Act

ii.The Sherman Act

iii.The Natural Monopoly Act

A) i and ii

B) ii and iii

C) ii only

D) i, ii, and iii

E) i only

 

3) The first antitrust law in the United States was the

A) Sherman Act, passed in 1960.

B) Clayton Act, passed in 1914.

C) Clayton Act, passed in 1830.

D) Sherman Act, passed in 1890.

E) Sherman Act, passed in 1933.

 

4) Section 1 of the Sherman Antitrust Act declares what to be illegal?

A) every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations

B) mergers of a horizontal nature

C) any attempt to monopolize an industry

D) sharing of technology among competing firms or mergers where the effect is to lessen competition

E) exiting an industry if the remaining firm or firms have a market share that is too large.

5) According to Section 2 of the Sherman Act, which of the following is a felony?

A) mergers of a vertical nature

B) horizontal mergers

C) attempts to monopolize an industry

D) price increases among competing firms that occur simultaneously

E) using the HHI to justify a merger

 

6) Which antitrust law has two main provisions, one against conspiring with others to restrict competition and the other making it a felony to monopolize or attempt to monopolize?

A) Sherman Act

B) Clayton Act

C) Robinson-Patman Act

D) Celler-Kefauver Act

E) Bade-Parkin Act

 

7) As a result of a wave of mergers in the early part of the twentieth century, which act was passed?

A) the Anti-Merger Act of 1900

B) the Sherman Act of 1909

C) the Clayton Act of 1914

D) the Horizontal Merger Act of 1919

E) the Pro-Competition Act of 1912

8) In the United States, antitrust laws

A) do not allow one person to be a director of two competing firms if being a member “substantially lessens competition.”

B) break up a company if it is too large because “size itself is an offense.”

C) do not always prosecute firms if they have fixed their prices.

D) regard excess competition as a felony under Section 3 of the Sherman Act.

E) place a maximum limit of 125 firms that are allowed to compete in any market.

 

9) Which of the following does antitrust law prohibit if it substantially lessens competition or creates a monopoly?

i.acquiring a competitor’s shares or assets

ii.territorial confinement

iii.becoming a director of a competing firm

A) i only

B) iii only

C) i and iii

D) i and ii

E) i, ii, and iii

 

10) Under the Clayton Act and its amendments, which of the following activities is illegal if it creates monopoly?

A) exit of a firm from a market with 4 or fewer surviving firms

B) price hikes among competing firms

C) price discrimination

D) patents that result in price hikes

E) entry of a firm into a new market