Chapter 18 – Antitrust Policy and Regulation
1. All of the following can file antitrust charges under the Sherman Act except:
2. Movie producers A, B, and C secretly meet and agree to release their summer blockbuster
films in sequence, rather than at the same time. The U.S. Justice Department learns of the
agreement and files an antitrust suit. The Federal government would most likely file charges
under the:
Chapter 18 – Antitrust Policy and Regulation
3. Which of the following is least likely to violate the Sherman Act or the Clayton Act?
4. The Sherman Act was designed to:
5. Which one of the following acts declared “Every contract, combination … or conspiracy, in
restraint of trade or commerce among the several states … to be illegal”?
Chapter 18 – Antitrust Policy and Regulation
6. The Clayton Act of 1914:
7. A function of the Federal Trade Commission is to:
8. Which one of the following is not prohibited by the original Clayton Act?
Chapter 18 – Antitrust Policy and Regulation
9. Which of the following is directly illegal under the Sherman Act?
10. Tying contracts are illegal under the:
11. Suppose Slow Ketchup requires that, as a condition of purchase, all restaurants using its
product must buy and make available its new sales product. This arrangement is an example
of:
Chapter 18 – Antitrust Policy and Regulation
12. Which of the following laws prohibited mergers by stock acquisition if the effect was to
lessen competition?
13. Which of the following gave the Federal Trade Commission responsibility to protect the
public against false and misleading advertising?
14. Which of the following amended the Clayton Act’s prohibition against mergers that
substantially lessen competition?
Chapter 18 – Antitrust Policy and Regulation
15. Which of the following made monopoly and restraints of trade criminal offenses against
the Federal government?
16. Tying agreements:
17. Responsibility for enforcing the antitrust laws rests:
Chapter 18 – Antitrust Policy and Regulation
18. The Celler-Kefauver Act of 1950:
19. The Celler-Kefauver Act of 1950:
20. Suppose the courts declare that XYZ Corporation violated the antitrust laws and as a
result the ABC Corporation lost $100 million of profits. XYZ Corporation will have to pay
ABC Corporation a monetary award of:
Chapter 18 – Antitrust Policy and Regulation
21. Price fixing:
22. The antitrust laws are based on the:
23. The Sherman Act:
Chapter 18 – Antitrust Policy and Regulation
24. The main purpose of the antitrust laws is:
25. The antitrust laws are enforced by the:
26. Interlocking directorates are:
Chapter 18 – Antitrust Policy and Regulation
27. The Federal Trade Commission:
28. The government was successful in gaining an antitrust conviction in the:
29. In which of the following cases did the final court decision result in a breakup of the firm
into competing businesses?
Chapter 18 – Antitrust Policy and Regulation
30. In which of the following cases was the firm found not guilty of violating the Sherman
Act?
31. In the Microsoft antitrust case, the Federal government said in essence that:
32. In which of the following sets of antitrust cases did the government gain convictions?
Chapter 18 – Antitrust Policy and Regulation
33. In which of the following pairs of antitrust cases did the firms prevail against the antitrust
charges leveled against them?
34. The “rule of reason” indicated that:
35. In the Alcoa case of 1945 the courts held that:
Chapter 18 – Antitrust Policy and Regulation
36. The basic issue in the DuPont cellophane case was:
37. Suppose a court rules that the ABC Corporation is in violation of the antitrust laws
because it produces 70 percent of the output of its industry. This decision is consistent with
the:
38. The Alcoa case:
Chapter 18 – Antitrust Policy and Regulation
39. In the U.S. Steel case of 1920 the courts held that:
40. Restructuring of a major industry resulted from the:
41. In the U.S. Steel case, the court ruled that:
Chapter 18 – Antitrust Policy and Regulation
42. The decision in the U.S. Steel case:
43. Which of the following is most likely to increase the Herfindahl Index of a particular
industry?
44. Which of the following findings would be the most likely to lead the U.S. Justice
Department to block a corporate merger under terms of the Clayton Act?
Chapter 18 – Antitrust Policy and Regulation
45. A merger between an automobile manufacturer and a maker of automobile tires is an
example of a:
46. Which one of the following is most likely to increase the Herfindahl index of a particular
industry?
47. A merger between a maker of household detergents and a fast food chain would be an
example of:
Chapter 18 – Antitrust Policy and Regulation
48. A conglomerate merger:
49. A vertical merger involves a combining of one or more firms:
50. A merger of several firms operating in different industries-for example, a trucking
company, a fast-food chain, and a brokerage house-is called:
Chapter 18 – Antitrust Policy and Regulation
51. Structuralists take the position that:
52. Behavioralists believe that:
53. A firm charged with monopolizing a market is less likely to be convicted if:
Chapter 18 – Antitrust Policy and Regulation
54. Price fixing is considered to be a per se violation of the antitrust laws because:
55. Conspiracies to fix prices are:
56. Which of the following is correct?