Question : 31) The government believes that which entry barrier has allowed : 1226280

Economics

31) The government believes that which entry barrier has allowed Microsoft to gain monopoly power?

A) ownership of the entire supply of a resource

B) patents

C) trademarks

D) economies of scale and network economies

E) territorial confinement

32) The U.S. courts found Microsoft

A) did not violate antitrust law.

B) violated the Sherman Act.

C) violated the Cellar-Kefauver Act.

D) engaged in predatory pricing.

E) violated the price discrimination clause of the Clayton Act.

33) If the Herfindahl-Hirschman Index in an industry is above 1,800, a merger that increases the Herfindahl-Hirschman Index by over 50 points will

A) be allowed by the government.

B) be challenged by the government.

C) be encouraged by the government.

D) increase competition in that industry.

E) never be allowed to happen.

34) The Federal Trade Commission uses ________ to help determine whether to challenge a possible merger.

A) the Sherman Act

B) the Clayton Act

C) the Herfindahl-Hirschman Index

D) the antitrust law of natural monopolies

E) the four-firm concentration ratio

35) If an industry has a Herfindahl-Hirschman index of 800, it is considered a

A) competitive market.

B) moderately concentrated market.

C) concentrated market.

D) monopoly.

E) small market.

36) If the Herfindahl-Hirschman Index (HHI) for a market is between 1,000 and 1,800, the Federal Trade Commission will examine

A) all mergers.

B) no mergers.

C) mergers that raise the HHI by 100 or more points.

D) mergers that raise the HHI by 100 or fewer point.

E) mergers that lower the HHI by 100 or more points.

37) Suppose there are 6 firms in an industry with the following market shares. If the two smallest firms want to merge, how will the Federal Trade Commission reply?

A) The firms will be allowed to merge and compete with the larger firms.

B) The firms will be challenged because the merger will raise the HHI by more than 50 points.

C) The firms will not be allowed to merge.

D) The firms will be challenged because the merger will raise the HHI by more than 100 points.

E) The firms will be challenged because the merger will raise the HHI by more than 250 points.

38) Federal Trade Commission guidelines state that it will examine mergers in markets for which the Herfindahl-Hirschman Index is

A) a positive number.

B) below 1,000 points.

C) between 1,000 and 1,800 and the merger would reduce the index by 100 points.

D) between 1,000 and 1,800, and the merger would increase the index by 100 points.

E) more than 1,800.

39) Suppose that an industry has an HHI of 1,900. Two firms in the industry want to merge. Under which conditions will the Federal Trade Commission challenge the merger?

A) The market is considered competitive, so the merger will not be challenged.

B) The merger will be challenged if it raises the HHI by 100 or more points.

C) The merger will be challenged if it raises the HHI by 50 or more points.

D) The merger will be challenged if it raises the HHI by 200 or more points.

E) The merger will be challenged if it raises the HHI by 500 or more points.

40) In order for the Federal Trade Commission to consider an industry concentrated, the industry must have a Herfindahl-Hirschman Index of

A) less than 1,000.

B) between 1,000 and 1,400.

C) greater than 1,800.

D) less than zero.

E) between 1,400 and 1,800.

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July 1, 2023

9.1 The United States in the International Economy

1) Following the tariff imposed on Chinese tires, some businesspeople correctly argued that the U.S. tariff would result in

A) China retaliating by raising tariffs on some U.S. exports.

B) China halting the sale of all products in the United States.

C) U.S. firms never being able to meet the demand for U.S.-produced tires.

D) the government demanding price cuts from U.S. tire manufacturers.

2) Workers in industries protected by tariffs and quotas are likely to support these trade restrictions because

A) they do not want to offend their employers who want them.

B) politicians lobby to convince workers the restrictions will make them better off.

C) they believe the restrictions will protect their jobs.

D) they don't understand that the restrictions will threaten their jobs.

3) The intention of the U.S. tariff on Chinese tires was to

A) protect jobs in the U. S. tire industry.

B) protect infant industries in tire U.S. tire market.

C) insure that Chinese tires meet U.S. quality and safety standards.

D) save the government money by restricting the sale of more expensive Chinese-made tires.

4) In the 1930s, the United States charged an average tariff rate ________. Today, the rate is ________.

A) of 100 percent; 20 percent

B) above 50 percent; less than 1.5 percent

C) of less than 10 percent; over 40 percent

D) of 17 percent; 33 percent

5) A tariff is a tax imposed by a government on

A) exports.

B) services.

C) imports.

D) luxury items.

6) Goods and services bought domestically but produced in other countries are referred to as

A) exports.

B) imports.

C) transfer payments.

D) foreign consumption.

7) Exports are domestically produced goods and services

A) sold to other countries.

B) sold to the government.

C) sold at home.

D) which are used to produce other goods and services.

8) When Roxanne, a U.S. citizen, purchases a designer dress from Barneys of New York that was made in Milan, the purchase is

A) both a U.S. and an Italian import.

B) a U.S. import and an Italian export.

C) a U.S. export and an Italian import.

D) neither an export nor an import for either country.

9) When BMW, a German company, purchases a welding machine that was made in Toronto, the purchase is

A) both a German and a Canadian import.

B) a German import and a Canadian export.

C) a German export and a Canadian import.

D) neither an export nor an import for either country.

10) Which of the following statements about the importance of trade to the U.S. economy is true?

A) Since 1950, both exports and imports have steadily decreased as a fraction of U.S. gross domestic product.

B) Overall, about 80 percent of U.S. manufacturing jobs depend directly or indirectly on exports.

C) The United States is the second largest exporter in the world.

D) The U.S. economy is highly dependent on international trade for growth in its gross domestic product.