1. Which of the following is true of Antitrust policy?
a. Antitrust policy prohibits agreements that allow free trade.
b. Antitrust policy restricts abusive behavior by a firm dominating a market.
c. Antitrust policy allows anti-competitive practices.
d. Antitrust policy restricts subsidies in goods and services.
e. Antitrust policy creates trade barriers like tariffs and quota.
2. Antitrust policy is used to describe government policies and programs that are designed to:
a. promote the creation of trusts, or combinations of independent firms.
b. control the growth of monopoly and enhance competition.
c. deal with the threat of competitive practices to public interests.
d. create an environment in which the government will distrust firms.
e. create an environment in which firms will distrust the government.
3. Which of the following are the three laws that define the U.S government’s approach to antitrust?
a. The Wilmington, Jackson, and International Trade Commission Acts
b. The Springfield, Clayton, and Trade Commission Acts
c. The Sherman, Clayton, and Federal Trade Commission Acts
d. The Sherman, Jackson, and Regional Trade Commission Acts
e. The Jackson, Charleston and Sherman Monopoly Restrictive Trade Acts
4. The antitrust laws in the United States were created in the late 1800s as a result of :
a. the emergence of large and dominant businesses in railroads, steel, oil, mining and finance.
b. the government decision to take responsibility for the improvement of trade deficit.
c. the first illegal cartel, created in late 1800s.
d. a steep decline in prices of primary goods in the United States.
e. the threats of an external aggression received by the country.
5. Which of the following laws was enacted to forbid monopolization and attempts to monopolize?
a. The Anti-Monopoly Act
b. The Sherman Antitrust Act
c. The Trade Act
d. The National Banking Act
e. The Celler-Kefauver Act
6. Which of the following practices is not restricted by the antitrust law in the United States?
a. Contracts and conspiracies in restraint of trade
b. Attempts to monopolize a market
c. Mergers that substantially reduces competition
d. Unfair or deceptive acts of competition
e. All forms of quality discrimination