The U.S. Justice Department, on the basis of the Herfindahl index, classifies the industries with the value:
a. below 500 as highly competitive; 500-1000 as moderately competitive; and above 1000 as highly concentrated.
b. below 1000 as highly competitive; 1000-1500 as moderately competitive; and above 1500 as highly concentrated.
c. below 500 as highly competitive; 500-1500 as moderately competitive; and above 1500 as highly concentrated.
d. below 1000 as highly competitive; 1000-1800 as moderately competitive; and above 1800 as highly concentrated.
e. below 1500 as highly competitive; 1500-2000 as moderately competitive; and above 2000 as highly concentrated.
QUESTION 2Which of the following does not constitute a household consumption item?
a. A pair of jeans
b. A bottle of Beck's beer
c. A haircut
d. A steam turbine electric generator
e. A packet of breakfast cereal
QUESTION 3Under George W. Bush's administration, antitrust policy:
a. became much more strict.
b. prohibited every merger attempts.
c. focused increasingly on environmental concerns.
d. became more relaxed.
e. ignored financial regulation and corporate scandals.
QUESTION 4Which of the following is true of households?
a. It consists of the employed members of the family.
b. It can comprise of either related members or unrelated individuals.
c. It refers to only the owners of rented apartments.
d. It comprises of a family of at least four members.
e. It generally describes a family that has two earning members.
QUESTION 5Which of the following is true of the per se rule?
a. The per se rule was used by U.S. courts from 1914 until the 1920s.
b. The per se rule had the effect of making antitrust policy more liberal.
c. According to the per se rule, activities that were potentially monopolizing tactics were illegal.
d. The per se rule did not allow the mere existence of anti-competitive activities to be sufficient evidence for a guilty verdict.
e. The per se rule was revived by Bush administration.
QUESTION 6The _____ tend to have a smaller public sector relative to the total economy.
a. socialist economies
b. centrally planned economies
c. autocratic economies
d. market economies
e. mercantilist economies
QUESTION 7The judicial doctrine, being a monopoly or attempting to monopolize is not in itself illegal; to be illegal, an action had to be shown to have negative economic effects, is called:
a. the big is bad policy.
b. the per se rule.
c. predatory price-cutting policy.
d. the rule of law.
e. the rule of reason.
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