1. U.S. antitrust policy is focused primarily on market conduct.
a. true
b. false
2. According to William Shepherd, in the U.S. economy
a. competition has decreased because of exports, regulation, and insufficient antitrust activity
b. competition has increased because of more imports, deregulation, and antitrust activity
c. Herfindahl indexes have been increasing, indicating a decrease in competitiveness
d. Herfindahl indexes have been decreasing, indicating a decrease in competitiveness
e. the market share of the largest manufacturing firms has increased, indicating a decrease in competitiveness
3. U.S. manufacturers formed trusts in the late 1880s because
a. they wanted to avoid price wars during depressions
b. economies of scale allowed larger firms to prosper
c. booms in the economy made trusts highly profitable and allowed them to expand
d. technological breakthroughs increased capital use and optimal firm size
e. the rapid growth of the railroads allowed firms to reach a wider market
4. Antitrust policy is designed to
a. control price and output in industries where monopoly is desirable
b. promote competition and reduce anticompetitive behavior
c. improve health and safety in products and in working conditions
d. regulate the firms in industries where "cut-throat" competition is potentially damaging
e. create monopolies by forcing competitive firms to merge
5. When were the first federal antitrust laws enacted in the United States?
a. after World War II
b. around the turn of the 20th century
c. during the Great Depression
d. after the World War I
e. with the U.S. constitution in 1787
6. Under U.S. antitrust law, a consent decree allows a firm to
a. cease the alleged wrongdoing only by admitting guilt
b. admit to an antitrust violation without penalty
c. cease the alleged wrongdoing without admitting guilt
d. challenge the government's accusation in court
e. admit to an antitrust violation without a lawsuit
9. Which U.S. government agencies handle antitrust matters?
a. the Department of Justice and the Federal Trade Commission
b. the Federal Trade Commission and the Securities and Exchange Commission
c. the Department of Justice and the Council of Economic Advisors
d. the Department of Justice and Congress
e. the Federal Trade Commission and Congress
10. There are six firms in the cresset industry. The market shares of the four largest firms are 50 percent, 20 percent, 10 percent, and 7 percent. The Herfindahl index is
a. 10,000
b. impossible to calculate because data for the fifth and sixth firms are not given
c. 87
d. 4,149
e. 3,081
11. Since most welfare programs are administered by the federal government, there is uniformity in both eligibility and the dollar value of benefits in a state by state comparison.
a. true
b. false
12. Which of the following is not true about income quintiles?
a. Only one in seven households in the bottom quintile has anybody working full time
b. A primary contributor to the smaller share of income going to the bottom quintile has been the growth of single-parent households
c. A primary contributor to the larger share of income going to the top quintile has been the growth of two-earner households
d. Three out of four households in the top quintile have two or more working
e. Only one in three households in the top quintile has anybody working at all
13. Data on the U.S. income distribution suggest that
a. the distribution of income among blacks is less uneven than the overall distribution of income
b. the distribution of income among blacks is more uneven than the overall distribution of income
c. black-white income differentials have increased
d. black-white income differentials have decreased
e. the distribution of income among blacks follows approximately the same pattern as the overall distribution of income
15. A fair distribution of income for the U.S. economy is
a. defined by the Department of Agriculture
b. a normative economic question
c. a positive economic question
d. not an economic issue
e. a state and local issue but not a national one
16. The income distribution in less-developed nations tends to be
a. impossible to calculate
b. more uneven than in developed economies
c. less uneven than in developed economies
d. similar to that in developed economies
e. not comparable because tax structures differ among countries
17. The official poverty definition in the U.S. is having an income that
a. is approximately equal to the average household income of Canada
b. places the household in the bottom 20 percent of the income distribution
c. is less than three times the cost of a nutritionally adequate yet frugal diet
d. is less than the average U.S. welfare allowance
e. provides minimum biological needs
18. if income were distributed solely according to marginal productivity,
a. workers in capital-intensive industries would earn less than workers in labor-intensive industries
b. it would be distributed normally
c. it would be distributed evenly
d. some individuals would not receive any income
e. every family would be above the poverty level
19. In determining the poverty level, the Census Bureau counts cash transfers, but not in-kind transfers, thereby understating the actual amount of antipoverty transfers made
a. false
b. true
20. Firms that are required to participate in affirmative action programs do end up hiring more minority employees.
a. false
b. true
21. Bureaus are
a. special-interest groups that try to influence legislators
b. collections of legislators who actively engage in logrolling
c. government agencies that implement legislation
d. competing-interest groups that battle federal agencies
e. a means of enforcing the median voter model in the decision-making process