When the price ceiling on eggs is lifted, there is a shortage of eggs in the market.

When the price ceiling on eggs is lifted, there is a shortage of eggs in the market.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 2

The first phase of antitrust policy in the U.S. began with the passage of the Sherman Antitrust Act in 1890 . To judge a firm's action, the courts in this period used:
 a. a per se rule.
  b. a rule of reason.
  c. a rule of thumb.
  d. rules of order.
  e. strict enforcement rule.

QUESTION 3

A rent control law, where tenants pay below-market rents, is a market restriction that may induce a decrease in the supply of rented apartments.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 4

Which of the following practices is restricted by the antitrust laws of the United States?
 a. Merger of smaller firms into a large firm
  b. Entry of new firms in the long run
  c. Standardization of products in a market
  d. Exit of non-performing firms in the long run
  e. Quality differentiation by competitive firms

QUESTION 5

A price ceiling imposed on a good that is below the equilibrium price will result in a shortage of that good.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 6

Which of the following is most likely to happen if the Federal Trade Commission (FTC) wins a suit against alleged violators of antitrust law?
 a. The FTC will receive compensation up to three times the damage caused.
  b. The FTC will not be able to impose substantial penalties.
  c. The FTC will force firms to break up through dissolution.
  d. The FTC will force firms to merge together.
  e. The FTC will file criminal actions that may result in fines but not prison sentences.

QUESTION 7

A price floor does not benefit producers.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 8

Which of the following entities is able to sue a firm for alleged antitrust misbehavior in the U.S.?
 a. Department of Illegal Affairs
  b. Department of State
  c. Department of Homeland Security
  d. Department of Justice
  e. Department of Labor