• 1.Strong economic concentration can be efficient and a near necessity for international competition, but it can also lead to all of the following, except?
• Poorer service
• Equitable distribution of political power
• Higher prices
• Suppressed employee wages
• 2. Which of the following is correct regarding the Microsoft litigation?
• The essence of the plaintiffs' complaint was that Microsoft had violated various antitrust laws in gaining and maintaining its market dominance.
• The United States court of appeals ordered Microsoft split into two (2) companies as a remedy for its antitrust wrongs, but the federal district court threw out that order.
• No states were parties to the litigation.
• The essence of the plaintiffs' complaint was that Microsoft was too big.
• 3.Which of the following is not part of the framework for monopoly analysis that has emerged from case law?
• Compute the defendant's market power
• Assess the defendant's strict liability
• Assess the defendant's intent
• Raise any available defenses
• 4. Which of the following is a disadvantage of mergers?
• Growth by merger is often more expensive than internal growth.
• Mergers hinder economies of scale.
• Mergers may lead to higher prices.
• Mergers may contribute to management inefficiencies.
• 5. A company that produces designer handbags acquiring a furniture company would be an example of a(n) __________ merger.
• vertical
• conglomerate
• oligopolistic
• horizontal
• 6. Under the Hart-Scott-Rodino Antitrust Improvements Act (HSR), mergers and acquisitions (of certain dollar thresholds that change annually in accord with the gross national product) must be reported to which organizations?
• The Federal Trade Commission (FTC) and the United States Justice Department
• The U.S. Chamber of Commerce and the U.S. Department of Commerce
• The Securities and Exchange Commission (SEC) and the U.S. Justice Department
• The U.S. Justice Department and the U.S. Chamber of Commerce
• 7. If the government concludes that a proposed merger is anticompetitive, which of the following may result?
• The government can ask the court to require divestiture of certain assets.
• The government can seek criminal indictments against the companies proposing the merger.
• The government can seek criminal indictments against executive leadership of the companies proposing the merger.
• The government can seek treble damages against the offending companies.
• 8. Which of the following is used to measure market concentration?
• The Herfindahl-Hirschman Index
• The Humphrey-Holt Index
• The Marshall Patton Index
• The Hart-Scott-Rodino Index
• 9. A vertical merger involves an alliance between which parties?
• Competitors in vertical markets
• Suppliers and purchasers
• Competitors in parallel markets
• Suppliers and marketing intermediaries
• 10. Which of the following is true regarding the authority of the United States Justice Department to apply American antitrust law abroad?
• Due to jurisdictional concerns, the United States Justice Department has not taken the position that American antitrust law applies abroad.
• The U.S. Justice Department claims authority to apply American antitrust law abroad, including the power to sue foreign firms that violate U.S. antitrust laws, even when the anticompetitive actions take place overseas.
• The U.S. Justice Department claims authority to apply American antitrust law abroad, including the power to sue foreign firms that violate U.S. antitrust laws, unless the anticompetitive actions take place overseas.
• Due to jurisdictional concerns, the U.S. Justice Department has taken the position that American antitrust law applies abroad only if a foreign government (more particularly, a foreign court) is willing to recognize and apply it.