Q&A Hero

Q: Which of the following horizontal restraints of trade has the element of monopoly in it? A) conscious parallelism B) market sharing C) group boycott D) exchange of nonprice information

Q: The Supreme Courtʹs decision in the Standard Oil of New Jersey case wasA) to force the company to send refund checks to customers.B) to force the company to pay $10 billion in fines. C) to increase the fine imposed by a lower court. D) to break up the company.

Q: ________ is a restraint of trade in which competitors agree that each will serve only a designated portion of the market. A) Resale market price maintenance B) Profit sharing C) Market sharing D) Gain sharing

Q: Which of the following is true of price fixing? A) It is a reasonable violation of Section 1 of the Sherman Act. B) It is a process seen exclusively among sellers of goods and services. C) It is permissible as it helps consumers or protects competitors from ruinous competition. D) It includes fixing the quantity of a product or service to be produced or provided.

Q: Three of the largest petroleum refineries in the country have come to an agreement about what price they would pay to purchase crude oil from sellers. This is an example of the ________. A) sellers' illegal per se price fixing B) sellers' illegal group boycott C) buyers' illegal per se price fixing D) buyers' illegal market sharing

Q: Price fixing is a ________ violation of Section 1 of the Sherman Act. A) reasonable B) per se C) justifiable D) permissible

Q: Which of the following protects people from incompetent or unscrupulous producers?A) The Federal Register B) Social regulationC) The market share test D) Economic regulation

Q: The rule of reason is characterized by ________. A) an automatic violation of Section 1 of the Sherman Act B) an inherently anticompetitive nature C) a lack of need for any evidence to deem the restraint unreasonable D) an evaluation of the company's market share, power, and other relevant factors

Q: Which of the following is true of the per se rule in restraint of trade? A) It fails to permit any defenses and justifications to save the restraint of trade. B) It applies only to restraints that are found to be unreasonable with certain evidentiary standards being met. C) It applies to restraints that are based primarily on the firm's market share and power. D) It requires a balancing of the positive and negative effects of the challenged restraint.

Q: The ________ is a rule that is applicable to restraints of trade considered inherently anticompetitive. A) consent decree B) Noerr doctrine C) per se rule D) rule of reason

Q: Under the ________, the court must examine the pro- and anticompetitive effects of a challenged restraint. A) Noerr doctrine B) rule of reason C) per se rule D) consent decree

Q: Which of the following would best exemplify an oligopolistic industry?A) agriculture B) large aircraft manufacturingC) confections D) retail convenience stores

Q: The two tests the U.S. Supreme Court has developed for determining the lawfulness of a restraint are the rule of reason and the ________. A) Noerr doctrine B) per se rule C) nolo contendere rule D) Colgate doctrine

Q: Under ________ of the Clayton Act, any person who suffers antitrust injury in his or her business or property can bring a private civil action against the offenders.

Q: The ________ is a federal statute, enacted in 1914, that regulates mergers and prohibits certain exclusive dealing arrangements.

Q: Federal ________ law comprises several major statutes that prohibit certain anticompetitive and monopolistic practices.

Q: Refer to the above figure. The profit maximizing quantity for a monopolistic competitor isA) Q1. B) Q2. C) Q3. D) Q4.

Q: Antitrust defendants often opt to settle government-brought antitrust actions by entering a plea of nolo contendere.

Q: The Federal Trade Commission (FTC) Act can be used to recover treble damages.

Q: Private parties cannot intervene in public antitrust actions brought by the government.

Q: Treble damages cannot be sought for the violation of antitrust laws.

Q: When the marginal cost curve of the monopolist shifts upward, there will beA) an increase in both price and quantity.B) an increase in price but a decrease in quantity. C) a decrease in price and in marginal revenue.D) a decrease in quantity and a decrease in marginal revenue.

Q: The Sherman Act is the only major antitrust act that includes criminal sanctions.

Q: The Robinson-Patman Act is a federal statute that makes it mandatory to provide a notification prior to a merger.

Q: The Clayton Act, enacted in 1914, regulates mergers and prohibits certain exclusive dealing arrangements.

Q: Government enforcement of federal antitrust laws is divided between the Antitrust Division of the Department of Justice and the Bureau of Competition of the Federal Trade Commission.

Q: Why is the pricing outcome of a perfectly competitive firm efficient in economic sense?

Q: Federal antitrust laws provide only for government lawsuits.

Q: The antitrust laws were enacted to promote anticompetitive behavior in commerce and industry.

Q: A(n) ________ is a type of plea where the defendant pays a penalty without admission of guilt. A) nolo contendere B) arraignment C) indictment D) plea bargain

Q: OutputTotal Costs100$400101402102405103409104414105420106427107435Refer to the above table. If the price is $3, the perfectly competitive firm should produceA) 102 units. B) 105 units. C) 103 units. D) 104 units.

Q: A private plaintiff has ________ years from the date on which an antitrust injury occurred to bring a private civil treble-damages action because only damages incurred during this period are recoverable. A) three B) two C) five D) four

Q: ________ damages are the only damages that may be recovered for violations of the Federal Trade Commission (FTC) Act. A) Treble B) Double C) Potential D) Actual

Q: Which of the following is considered an invalid antitrust injury? A) lost profits B) an increase in the cost of doing business C) injury resulting from higher prices being "passed on" D) a decrease in the value of tangible or intangible property caused by the antitrust violation

Q: Which of the following is the only act that includes criminal sanctions for unfair trade practices? A) the Clayton Act B) the Sherman Act C) the Robinson-Patman Act D) the Federal Trade Commission Act

Q: What happens to the marginal cost curve when the marginal physical product of labor is rising?A) It becomes upward sloping. B) It becomes vertical.C) It becomes downward sloping. D) It becomes horizontal.

Q: The ________ is a federal statute, enacted in 1890, that makes certain restraints of trade and monopolistic acts illegal. A) Federal Trade Commission Act B) Robinson-Patman Act C) Clayton Act D) Sherman Act

Q: The ________ is a federal statute, enacted in 1930, that prohibits price discrimination. A) Sherman Act B) Clayton Act C) Robinson-Patman Act D) Federal Trade Commission Act

Q: The ________ is a federal statute, enacted in 1914, that regulates mergers and prohibits certain exclusive dealing arrangements. A) Sherman Act B) Celler-Kefauver Act C) Robinson-Patman Act D) Clayton Act

Q: Which of the following changes a firmʹs production function? A) Hiring additional workers B) Acquiring additional physical capital C) Adding a second production facility exactly like its first production site D) Adopting new technology

Q: Which of the following is true of antitrust laws? A) Antitrust laws are fixed and unchangeable. B) Private parties cannot intervene in public antitrust actions brought by the government. C) Federal antitrust laws provide for government lawsuits and exclude private lawsuits from their purview. D) Treble damages cannot be sought in antitrust lawsuits.

Q: ________ laws are a series of laws enacted to specifically limit anticompetitive behavior and monopolistic practices in almost all industries, businesses, and professions operating in the United States. A) Contract B) Antitrust C) Laissez-faire D) Canon

Q: List the major federal statutes that regulate the labor-management relationship, along with their respective provisions.

Q: The group that a union is seeking to represent is called the ________ unit, and it must be defined before the union can petition for an election.

Q: Economic profits are A) total revenue minus explicit costs. B) total revenue minus implicit costs. C) total revenue minus explicit and implicit costs. D) total revenue minus accounting costs.

Q: Decertification elections must be supervised by the ________.

Q: If employees no longer want to be represented by a union, a(n) ________ election is held.

Q: Enacted in 1932, the ________ is a federal statute which stipulates that it is legal for employees to organize.

Q: John L. Lewis formed the ________ in 1935, which permitted semiskilled and unskilled workers to be its members.

Q: If price of a product fallsA) the marginal utility of the product also falls.B) the budget line rotates to the right. C) the budget line rotates to the left.D) the indifference curve will shift to the left.

Q: The ________ was formed in 1886, under the leadership of Samuel Gompers. Only skilled craft workers such as silversmiths and artisans were allowed to belong.

Q: The ________ Act gives the president of the United States the right to seek an injunction (for up to 80 days) against a strike that would create a national emergency.

Q: The inaccessibility exception is a rule that permits employees and union officials to engage in union solicitation on company property if the employees are beyond the reach of reasonable union efforts to communicate with them.

Q: An employer is permitted to bar off-duty employees from union solicitation on company premises.

Q: Assume that the marginal utility from good x is 10 units and that the price of good x is $5 per unit. The marginal utility from good y is 15 units and its unit price is $7. In this situation, a utility-maximizing consumer shouldA) consume more of good x. B) consume only good y.C) consume more of good y. D) consume neither x nor y.

Q: A decertification election is held when an employer does not want the presence of multiple unions in the organization.

Q: The NLRB is required to supervise all consent elections.

Q: To certify a union, more than 50 percent of the employees must vote for establishing the union.

Q: Managers and professional employees cannot belong to unions formed by employees they manage.

Q: Janice earns an income of $2,000 a week and goes out to lunch 3 times a week. If her income increased to $2,100 she would go out to lunch 4 times a week. Compute Janiceʹs income elasticity of demand.A) 0.17 B) 5.86 C) 7 D) 100

Q: An appropriate bargaining unit must consist of employees from a single company.

Q: A group of employees that a union is seeking to represent in known as an appropriate bargaining unit.

Q: Section 7 of the NLRA is a federal law that gives employers the right to terminate union practices detrimental to the organization.

Q: The NLRB oversees union elections and prevents employers and unions from engaging in illegal and unfair labor practices.

Q: Elastic demand impliesA) that a one percent increase in price results in a smaller than one percent decrease in quantity demanded.B) that a one percent increase in price results in a larger than one percent decrease in quantity demanded.C) that a one percent cut in price results in a larger than one percent increase in quantity demanded.D) that a one percent decrease or increase in price induces no change in total revenue.

Q: The Labor Management Reporting and Disclosure Act, enacted in 1950, gives employers the right to engage in free speech efforts against unions prior to a union election.

Q: The Taft-Hartley Act gives the president of the United States the right to seek an injunction against a strike that would create a national emergency.

Q: The National Labor Relations Act (NLRA) establishes the right of employers to terminate the employment of members of unions whose continued picketing hinders the progress of the business.

Q: The Norris-LaGuardia Act is a federal statute which stipulates that it is legal for employees to organize.

Q: The exclusive rights of ownership of property are generally referred to asA) level property rights. B) private property rights.C) public property rights. D) common property rights.

Q: Individual unions are not allowed to join AFL-CIO; the members need to be individual employees.

Q: Unskilled and semiskilled workers did not qualify as members of the CIO.

Q: Only skilled craft workers such as silversmiths and artisans were allowed to belong to the American Federation of Labor.

Q: If at least 25 percent of the employees in a bargaining unit sign consent cards indicating that they are interested in joining or forming a union, the National Labor Relations Board can be petitioned to investigate and to set an election date.

Q: Which of the following is an individual mandate in the new the federal governmentʹs new national health care program?A) Under the new program, the federal government will coordinate the establishment of health insurance exchanges.B) Firms with at least 50 employees must either provide health insurance or pay fines when uninsured employees receive tax subsidies to purchase insurance.C) A tax rate of 3.8 percent will be assessed on nearly all earnings above $200,000 per year for individuals and above $250,000 per year for married couples.D) Nearly all U.S. residents must either purchase health insurance coverage or pay a fine of up to $750 per year for an individual (up to $2,250 per year for a family).

Q: Labor unions use the approach of individual bargaining with employers to obtain better working conditions.

Q: Labor unions have the right to engage in picketing in support of their positions.

Q: M'ore Mining Company's employees want a union to represent their rights. All of the employees live in company-owned employee housing adjacent to their place of work. In order for a union to be established, solicitation must be carried out by pro-union employees. Which of the following rules may assist those employees in their union solicitation efforts on M'ore Mining Company property? A) the incompatibility caveat B) the incontestability exclusion C) the inaccessibility exception D) the insubordination proviso

Q: A ________ union election can be held without NLRB supervision. A) dissent B) consent C) decertification D) conditional

Q: If everyone earned the same income, the Lorenz curve would beA) a rectangular hyperbola.B) a straight line from the origin at a 45 -degree angle. C) the horizontal axis.D) very bowed from the diagonal.